K33: New spot altcoin ETFs may give rise to attractive long-short strategies

PANews reported on June 18 that according to The Block, digital asset brokerage and research company K33 said that under the supervision of the U.S. Securities and Exchange Commission (SEC), which is more inclined towards cryptocurrencies, new spot altcoin ETFs may be launched in the coming months, and relevant approvals may give rise to attractive long and short strategies. Currently, eight issuers have submitted spot Solana (SOL) ETF applications, and the SEC also requires them to add pledge content when updating their applications, which may mean that pledge will become a component of Ethereum and Solana ETFs. In addition, there are ETF applications for crypto assets such as LTC, XRP and DOGE.

K33 analyst Lunde pointed out that unlike the "Grayscale effect" when Bitcoin and Ethereum ETFs were launched in the early days, Grayscale Solana Trust has never traded at a discount and has low holding risk; while Litecoin Trust often trades at a discount, and only two issuers have applied for its ETF, which may face capital outflow risks after its launch. Therefore, Lunde believes that after the launch of the ETF, the trading strategy of going long on Solana and shorting Litecoin is quite attractive, especially if the two are listed at the same time.