The US government closure is on the agenda of the Bitcoin and cryptocurrency markets, but the Altcoin ETF, awaiting approval, is also facing uncertainty.
At this point, experts say the decision on the Altcoin ETF is likely not to be announced during the US government closure, and its approval is highly unlikely.
Although the uncertainty surrounding ETFs persists, Vetle Lunde, director of research at K33 Research, outlined the strategies of Solana (SOL) and Litecoin (LTC) if the SEC approves the AltCoin ETF.
Solana’s long and litecoin short!
At this point, Runde pointed out that Solana is less likely to be affected by the potential supply pressure from grayscale compared to Litecoin.
Lunde pointed out the difference in the transaction history of Grayscale’s Solana and Litecoin Trusts, noting that “Long Sol and Short LTC” transactions could be attractive if the Altcoin ETF is launched.
Grayscale’s Solana Trust, which began trading in 2023, holds only 0.1% of the circulating Solana supply and has never traded at a discount. This means that after converting to ETFs, you may face minimal sales pressure. Large demand for multiple Solana ETF applications and the Ministry of Digital Assets Treasury strategies further supports SOL pricing.
However, in contrast, Grayscale Litecoin Trust controls 2.65% of LTC’s circular supply, and Trust is trading repeatedly at a massive discount, similar to previous GBTC and Ethe conversions.
Given the relatively few ETF applications in Litecoin compared to Solana, Lunde said he considers the “Long Solana/Short Litecoin” strategy to be extremely attractive in the ETF list.
“We consider Long Sol and Short LTC to be attractive when the launch of Solana and Litecoin ETFs occur simultaneously.
Given the history of LTC, which has been strongly responsive to positive news, we wait a few days after launch before taking action. ”
*This is not investment advice.
