Spot Altcoin ETFs Create Opportunity Between SOL and LTC, Says K33

• • Solana and Litecoin ETFs Expand Investment Options
  • K33 suggests long strategy on SOL and short on LTC
  • Company plans to buy 1.000 BTC with share issuance

The hype surrounding new spot altcoin ETFs in the United States is paving the way for more sophisticated directional strategies in the cryptocurrency market, according to a recent analysis by K33 Research.

The SEC may soon approve new spot altcoin ETFs, according to K33 Research. This shift could open doors for innovative investment products in the crypto space, potentially impacting $ ETH and other altcoins.

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According to Vetle Lunde, the firm's head of research, the potential approval of products linked to Solana, XRP and Dogecoin could provide long/short trading opportunities, especially in the face of a more receptive regulatory environment from the SEC.

Currently, eight issuers have filed applications for Solana ETFs, with the SEC requesting adjustments that include clauses related to staking — which, according to Lunde, signals a greater engagement of the agency with the crypto sector. The presence of staking in ETFs, in fact, can benefit both Solana and Ethereum, strengthening the investment thesis in these networks.

Lunde also highlighted what he called the “Grayscale effect” — a phenomenon observed after the conversion of GBTC and ETHE funds to ETFs, which resulted in the sale of more than half of the assets under management in just 200 days. However, he points out that Solana presents important differences in this context. Grayscale’s SOL fund, launched in 2023, has never operated at a discount and holds only 0,1% of the cryptocurrency’s total supply, reducing the risk of aggressive liquidation.

On the other hand, the Litecoin fund from the same manager represents 2,65% of the currency's circulating supply and has a history of trading at a discount, especially after recent cash creations. So far, only two managers — Canary Capital and CoinShares — have filed applications for a Litecoin ETF, which, according to K33, limits the ability to absorb large-scale redemptions.

Given this scenario, the broker assesses that a long position in SOL and short position in LTC may be advantageous, especially if both products are launched simultaneously on the market.

In parallel, K33 announced a new share issuance aimed at raising approximately $8,9 million, part of its strategic plan to accumulate up to 1.000 BTC in the corporate treasury. The capital will be used to increase its operating leverage, increase margins and attract institutional investors.