Exchange-traded fund (ETF) issuers are keenly interested in the cryptocurrency market’s rapid growth, but they are also cautious. Greg King, the CEO of REX Financial, has stated that most cryptocurrencies, especially those not in the top 10, are “pretty sketchy” and pose significant risks when it comes to being included in an ETF. In an interview with Bloomberg ETF IQ, he discussed the importance of being selective in a market that is constantly evolving.
Dangers in the Crypto Market
King said that cryptocurrencies below the top 10 are quite risky. He said, “Crypto gets pretty sketchy below the top 10, certainly below the top 20.” Many digital assets aren’t suitable for ETFs because they are too volatile and lack sufficient stability.
ETFs need safe and regulated investment vehicles. He said that ETF issuers need to be very careful about the assets they choose to safeguard investors from the market’s unpredictability, especially for coins that don’t have strong fundamentals.
Solana As a Great Choice
Solana is one of the cryptocurrencies that is gaining popularity and is a strong candidate for ETF issuers. King said that the blockchain was fast and suitable for stablecoin transactions, which made it seem like it might compete with Ethereum.
Nine companies, including VanEck, Bitwise, and Greyscale, have requested spot Solana ETFs. They are expected to be approved by October 2025. Adding Solana to your portfolio is a good idea because it has staking incentives and other technological benefits.
The Growth of Memecoin ETFs
REX Financial is exploring ETFs based on memecoins like Bonk, Official Trump, and Dogecoin, which is surprising given that they lack any real value. King said that they are becoming more popular, which is part of a larger trend among ETF issuers to branch out beyond Bitcoin and Ethereum. These memecoins are risky, but they garner significant attention from the market, which could increase investor interest in new ETF products.
What Will Happen To Crypto ETFs In The Future?
King believes that instead of a large number of new coins entering the ETF industry, there will be more funds allocated to each cryptocurrency. This tendency is similar to how Bitcoin and Ethereum ETFs have done well, with several issuers focusing on the same assets.
The SEC’s new leadership has made it more friendly, which has led to optimism. There are over 75 crypto ETF applications being reviewed, indicating that institutions are highly interested. Greg King’s warning about the changing crypto ETF market highlights the importance of conducting thorough research.
Issuers can safely explore memecoins while focusing on proven cryptocurrencies, such as Solana. This way, they can provide investors with regulated exposure while staying safe in the “sketchy” crypto sector. As regulations become clearer, ETF issuers will play a significant role in encouraging more people to adopt cryptocurrencies in 2025 and beyond.