Sticking with the Narrative

Crypto Market Trends

Institutional Adoption

Ethereum ETFs and Solana Investment

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Published on

Nov 21, 2023

At this point in the crypto market cycle, the narrative has not changed.  Hype and speculation has been driven by institutional adoption, period.  Examples of this can be found in many of the articles myself and the other Gray Market team members have written in the past few months.  The BlackRock Bitcoin ETF application along with the largest asset managers in the world following suit created a huge shift in the market, and the trend continues.  

Now, BlackRock, the world’s largest asset manager, has filed an application with the SEC to launch a spot Ethereum ETF, which would track the price of ETH and hold it in custody. The proposed ETF, called BlackRock Ethereum Trust, would be the first of its kind in the U.S. and would compete with the existing Ether futures ETFs that launched in October. 

This move was recently followed by Fidelity Investments, one of the largest financial services firms in the U.S., which has also filed an application with the SEC to offer a spot Ethereum ETF, which would track the price of ETH and hold it in custody. The proposed ETF, called Wise Origin Ethereum Trust, would be similar to Fidelity’s spot Bitcoin ETF, which is still pending approval from the SEC. Fidelity is one of the leading advocates for crypto ETFs in the U.S. and has been pushing for regulatory clarity and innovation.

As I have mentioned before, a ton of hype and speculation is fueled by these moves.  Based on the current institutional interest surrounding Solana (SOL), I would assume that SOL could be one of the next crypto projects to be supported by a potential spot ETF.  As a matter of fact, Grayscale Investments, the largest digital asset manager in the world, has launched a new trust product that allows accredited investors to buy and sell shares of Solana, the native token of the fast-growing blockchain platform. The Grayscale Solana Trust is the 16th product in Grayscale’s portfolio, which includes trusts for Bitcoin, Ethereum, and other major cryptocurrencies. Grayscale’s trusts are not ETFs, but they offer exposure to crypto assets through a traditional investment vehicle.

There has been a cycle happening with these major coins, and a playbook of how they are being introduced to the institutions.  It is no coincidence that BTC and ETH have moved this way for the past few months as huge institutions keep ringing the alarm about how safe and profitable Bitcoin and other crypto assets can be.  If you are paying attention,  Solana has made some insane moves since September of 2023.  The asset has moved From approximately $17.90 to its current price of $60.00 on November 20th, 2023.  Solana is now the number five (5) crypto asset by market cap if you remove USDT (stablecoin) and surpassing USDC.  What is fueling this massive move so early before the bitcoin halving cycle?  Where is all of this hype and speculation coming from?  Could it be that institutions, Venture Capital funds, and insider whales know more than we do?  Also, keep an eye out on XRP.  Maybe the hype and speculation happened too early, and front ran the market.  If XRP is one of the most regulated and scrutinized crypto assets, and potentially, one of the safest, then I could see institutions coming to the same conclusions.  Maybe they are waiting for finality in court, maybe they are waiting for something else?  But be assured when it happens, it will be another quick move. 

If the market is reacting in a specific manner to specific tokens based on where institutional investments are moving, then start paying attention to what institutions are doing, and where they are putting their money.  Follow the trend if you can find it.  Not financial advice, but an observation.  Maybe following this trend can help secure some gains in the next bull market!