- Avalanche and Aptos touted to be next in line for ETF approval
- Both tokens saw their prices fall significantly over the last few days
As an analyst with a background in cryptocurrency and experience following the regulatory landscape, I believe that Avalanche (AVAX) and Aptos (APT) have a strong case for being the next cryptocurrencies to receive ETF approval, given their relatively decentralized structures and increasing investor interest. However, it’s important to note that the approval process is not guaranteed and depends on various factors such as regulatory decisions and market conditions.
The anticipated approval of ETFs for Bitcoin and Ethereum has fueled their rising prices. Yet, it’s important to note that other cryptocurrencies might experience similar price jumps as well.
If companies decide to include them, Avalanche (AVAX) and Aptos (APT) are two digital currencies that have recently been mentioned as potential additions to the exclusive group.
Will Avalanche and Aptos be next?
Based on the information provided by GSR, I would assess that both Avalanche and Aptos have a greater likelihood of securing approval for their respective ETFs, assuming the Solana ETF proposal gains acceptance first.
The research conducted by GSR has uncovered that regulatory organizations such as the SEC are exhibiting a more receptive attitude towards launching spot ETFs based on cryptocurrencies under certain conditions. This marks a noteworthy change in stance compared to past years.
Decentralization and potential investor demand are seen as key factors. A higher level of decentralization, meaning a network not controlled by a single entity, is likely to be viewed favorably for ETF approval. Metrics like Nakamoto Coefficient, Staking Requirements, and CCData Governance Rating can help assess this.
Based on the analysis by GSR, Avalanche and Aptos are strong contenders among cryptocurrencies for securing ETF (Exchange Traded Fund) approval because of their comparatively decentralized architectures.
Despite a high degree of decentralization, a cryptocurrency-based ETF may still not materialize without sufficient investor demand. Consequently, potential issuers will consider both the level of decentralization and investor interest when selecting which digital assets to propose for ETF creation.
If approved, ETFs for Avalanche and Aptos would provide a simpler investment option for traditional investors, who may prefer not to purchase crypto directly from exchanges. This could potentially attract a larger and more diverse user base, contributing to wider adoption of these platforms.
At present, the situation appeared discouraging for both protocols. The number of daily activities and transactions significantly decreased over the past few days. Furthermore, there was a noticeable drop in Total Value Locked (TVL) across all boards, suggesting that their performance in the decentralized finance (DeFi) sector had not been favorable.
How are the tokens doing?
As a researcher observing the market trends, I’ve noticed that both tokens have experienced noticeable price drops during the last few months, indicating a potential bearish market direction.
Despite a substantial decrease in positive sentiment towards Aptos in recent days, there was a notable increase in favorable sentiment for Avalanche.
Realistic or not, here’s AVAX market cap in BTC’s terms
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2024-06-29 08:07