Cryptocurrency ETFs attracted industry attention this week as participants await the influences of Donald Trump’s inauguration and the potential approval of a Solana ETF.
Impossible Cloud Network co-founder Kai Wawrzinek said VanEck’s newly proposed Onchain Economy ETF could make crypto’s bull-bear rollercoaster a thing of the past as it encourages more institutions to adopt blockchain infrastructure. That could create a stable foundation for the entire crypto industry to grow.
“ETFs are bringing a lot of money into crypto which is supporting prices, as we can see with XRP today, which has finally surpassed its all-time high for the first time in nearly eight years thanks to rumors of an upcoming ETF,” Wawrzinek said. “Perhaps more interesting, though, is VanEck’s filing for an Onchain Economy ETF, which will reportedly include digital asset-focused companies such as exchanges, crypto payment platforms, and mining firms.
Rather than a vehicle for a single asset, this filing demonstrates confidence among institutions in the infrastructure behind cryptocurrency. Indeed, for a long time, many in TradFI have been very pro blockchain technology, even if they were anti-crypto, with firms like Standard Chartered experimenting with the technology for years already.”
Should this and similar ETFs be approved, Wawrzinek said we will likely see huge institutional adoption of crypto infrastructure providers. This will provide a foundation from which crypto can build without the ever-looming threat of the next bear market, during which many projects shut up shop, stalling progress in the entire industry.
He added that the timing of this filing also couldn’t be better. Enterprises are increasingly seeking alternatives to centralized solutions, and ETFs like this pave the way for further investment in decentralized infrastructure projects.
“This could be the development needed to bring real stability and long-term growth to the ecosystem,” Wawrzinek concluded.
Chris Chung is the founder of Solana-based DEX Titan. He said euphoric markets should prepare for a SOL sell-off whether a Solana ETF does or doesn’t get approval on Jan. 25.
“The price of SOL has shot well past the $200 mark today on speculation of a potentially imminent approval for a Solana ETF,” Chung said. “Four of the pending proposals, including VanEck’s, have the first deadline coming on Jan. 25.
“And with President-elect Donald Trump’s inauguration on (Jan. 20), expectations are mounting that he will introduce pro-crypto policies on day one and prioritize US-founded cryptocurrencies, like Solana. Earlier this week, JP Morgan also came out to predict $3-$6 billion of inflows into a Solana ETF in the first year, which would obviously boost the price.”
Chung urged market participants to keep in mind that approval on Jan. 25 is not guaranteed, and if these initial proposals are rejected, it could cause a sell-off.
“Equally, we’ve seen many instances recently when investors buy the rumor and sell the news, which could be the case with SOL ETFs,” Chung cautioned. “Ultimately, it’s worth being prepared for heightened volatility, regardless of the decision.”