A new wave of cryptocurrency exchange-traded funds (ETFs) is coming, and analysts are already predicting winners and losers. One firm, K33 Research, has taken a close look at Solana (SOL) and Litecoin (LTC), and their analysis suggests a potentially lucrative trading opportunity.
Solana’s ETF Advantage
Several companies have filed applications with the SEC for Solana ETFs, and the SEC seems to be more open to approving them than in the past. Analyst Vetle Lunde at K33 points out that these ETFs might even include “staking,” a feature that lets investors earn rewards for holding the cryptocurrency. This could be a game-changer.
The Grayscale Solana Trust, which holds a tiny fraction of all Solana, has never traded at a discount. This means that if it’s converted to an ETF, it’s unlikely to cause a big market crash.
Litecoin’s ETF Risk
The situation is different for Litecoin. The Grayscale Litecoin Trust holds a much larger percentage of all Litecoin and has historically traded at a discount. If this trust becomes an ETF, there’s a higher chance of a large sell-off as investors cash out. Fewer companies are also applying for Litecoin ETFs, which could mean less support after launch.
A Bold Trading Strategy
Based on these differences, Lunde suggests a trading strategy: buy Solana and sell Litecoin (short LTC) if both ETFs launch. The idea is that Solana’s ETF launch will be smoother, while Litecoin could see a price drop similar to what happened with Grayscale’s Bitcoin and Ethereum trusts earlier this year.
K33’s Bitcoin Bet
Beyond its crypto ETF analysis, K33 is also doubling down on Bitcoin. They’re raising money to add 1,000 more Bitcoins to their corporate treasury, believing in Bitcoin’s long-term value and its potential to boost their brokerage business.
