REX Financial CEO Greg King said that the crypto market gets dicey “below the top 10” and that a careful choice should be made by ETF issuers regarding what tokens to turn into funds.
Issuers of crypto exchange-traded funds should carefully consider which cryptocurrencies to offer exposure to in their funds, as most of the crypto market is considered “pretty sketchy,” according to REX Financial CEO Greg King.
“Crypto gets pretty sketchy below the top 10, certainly below the top 20,” King told Bloomberg’s ETF IQ on Monday.
“There’s some significant picking and choosing that has to happen by issuers there,” he added.
King said that he did not think “a huge explosion” in ETF filings for various cryptocurrencies would occur, but he predicted that “a lot of funds per coin” would.
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ETF issuers have rushed to get approval for a host of crypto funds after the success of spot Bitcoin ETFs, and as a friendlier tone has been taken with the sector by the Securities and Exchange Commission under US President Donald Trump.
REX is waiting for approvals for ETFs tied to memecoins—cryptocurrencies with no intrinsic value—which would track Bonk, Official Trump, and Dogecoin, which is currently the 10th largest cryptocurrency by market value.
Greg King Believes Solana Is the Future for Stablecoins
In early July, a Solana ($187.49) ETF was launched by REX Financial that included exposure to staking rewards, which are payouts given to those who lock up tokens to support the blockchain.
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King said that Solana is “faster and more designed for high processing speed,” and that it has been overlooked as a blockchain for stablecoins, which are mostly popular on rival blockchain Ethereum.
“Frankly, when I saw the big debate come out about stablecoins being all built on ETH [Ethereum], I was like ‘this is a huge oversight.’ I think Solana is actually the story for the future as far as stablecoins go.”
“A lot of people think that Solana is the up-and-comer that’s going to sort of dethrone Ethereum,” he added. “It’s a very controversial debate. I probably made friends and enemies by even suggesting that.”
More ETFs Expected for Each Cryptocurrency
King also addressed expectations that many crypto ETFs will be launched in the coming months, saying that he thinks there will be “somewhat of an explosion.”
“Where else in ETF land did you have six, eight, 10, 12 people lining up to launch the same exact thing over and over like has been seen with a Bitcoin ETF and then with ETH, now with Solana,” he added.
“Those numbers just multiply, and I think you will continue to see that,” King said.
He added that Solana was a “great candidate” for a spot ETF, saying it was considered “pretty interesting as a portfolio investment” due to its rivalry with Ethereum and its comparatively “much larger staking reward.”
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Nine Issuers File for Solana ETF Approvals
Nine issuers have currently filed to launch a spot Solana ETF, with VanEck, Bitwise, Grayscale, 21Shares, CoinShares, Canary Capital, Franklin Templeton, Fidelity Investments, and a joint fund by Invesco and Galaxy Digital in the mix.
The SEC is expected to clear them for trading by October, and it has been signaled by analysts and prediction market bettors that the funds will almost certainly be approved.
