When crypto prices were running hot, Wall Street pounced. Issuers rushed to file for a dizzying number of ETFs tied to altcoins — the volatile, thinly traded tokens that live on the speculative edge of digital finance. Then came the past week’s crash.
Yet, even before the meltdown, Ilan Solot, senior global market strategist at
Marex Solutions, saw major hurdles to wrapping altcoins into ETFs — from shallow liquidity and token dilution to their small market caps.
“We saw this carnival of new filings and many providers thought it was party time,” he said. But “after the blow up, it will be even harder. There are thousands of ETFs that launched that get no longevity. I suspect few of these will have meaningful inflows.”
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