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Bitwise CIO Predicts Year-End Crypto Rally on SEC Tailwinds as Firm Files for Spot Avalanche ETF
Yahoo Financeยท 2025-09-16 12:35
Core Viewpoint - The crypto market is poised for a significant rally as the SEC prepares to introduce generic listing standards for crypto exchange-traded products (ETPs) [1][4]. Group 1: Market Outlook - Macro and structural factors are aligning for a strong year-end rally in the crypto market, despite September being historically weak for digital assets [3]. - Potential interest rate cuts, increasing inflows into crypto investment products, concerns over dollar strength, and rising momentum in stablecoins and tokenization are identified as key drivers for this rally [3]. Group 2: Regulatory Developments - The SEC's proposal for generic crypto ETP listing standards could streamline the approval process, allowing issuers to launch ETPs within as little as 75 days if the underlying asset meets specific criteria [4]. - This regulatory change could lead to a surge in new ETP offerings, with assets like Solana, XRP, Avalanche, Dogecoin, and Chainlink potentially qualifying quickly [5]. Group 3: Company Initiatives - Bitwise has filed for a spot Avalanche ETF, aiming to provide institutional investors with regulated exposure to AVAX, joining other firms like VanEck and Grayscale in this initiative [5][8]. - The fund will track the CME CF Avalanche-Dollar Reference Rate and will be backed by AVAX tokens held in custody by Coinbase Custody [5][6]. Group 4: Historical Context - The expected boom in crypto ETPs is compared to the surge in traditional ETF issuance following the SEC's adoption of the "ETF Rule" in 2019, which tripled ETF launches in the U.S. and made the market more accessible [7].