Cryptocurrency Market Shifts Focus to Ether and Solana

The cryptocurrency market is witnessing a significant shift in focus, with Ether and Solana tokens gaining traction as hype around US cryptocurrency exchange-traded funds (ETFs) intensifies. Bitcoin, which was once the center of attention, is now being overshadowed by these smaller digital assets.

Cryptocurrency market trends

The shift in focus is largely attributed to the recent filing of an ETF application by VanEck for Solana, which has led to a surge in the token’s value. Ether, on the other hand, has been gaining momentum as final approvals for ETFs focused on the coin come closer.

“Sentiment around the Ether ETF launch is far too bearish,” said Sean Farrell, Head of Digital Asset Strategy at Fundstrat. He predicts that the ETFs will get a boost from hedge funds pursuing the so-called basis trade, which seeks to exploit discrepancies between the spot and futures market.

Ether has pulled ahead of Bitcoin this year, with a 51% increase in value since the start of the year, compared to Bitcoin’s 45% advance. Solana, also known as SOL, has surged 754% over the past 12 months and now ranks as the No. 5 digital asset.

Ether and Solana performance

The US Securities and Exchange Commission (SEC) has been ambiguous about its stance on Ether, with Chair Gary Gensler arguing that most other tokens are unregistered securities that should be subject to its oversight. However, the agency has surprisingly pivoted towards approval of spot-Ether ETFs after grudgingly allowing Bitcoin funds in the wake of a court reversal in 2023.

The SEC’s stance on Solana is less clear, with the regulator singling out the token as an unregistered security in various lawsuits. This raises doubts about whether the SEC would allow Solana ETFs, despite the filing by VanEck.

As the cryptocurrency market continues to evolve, it remains to be seen how the focus on Ether and Solana will impact the industry as a whole.

Cryptocurrency market trends