The issuers of cryptocurrency exchange-traded funds (ETFs) should carefully select the cryptocurrencies to be included in the fund, as most of the cryptocurrency market is "quite dubious," said Greg King, CEO of REX Financial.
King stated on Bloomberg's "ETF IQ" program on Monday, "Once cryptocurrencies fall out of the top ten, especially the top twenty, the risks become very high."
"The issuers must conduct strict screening and identification," he added.
King also mentioned that he does not believe there will be a "massive explosion" in cryptocurrency ETF filings, but he expects "many funds for each coin."
After the success of the spot Bitcoin (BTC) ETF, ETF issuers have rushed to apply for more cryptocurrency funds. Additionally, the U.S. Securities and Exchange Commission has been more friendly towards the industry during President Trump's term.
REX is awaiting approval for an ETF related to meme coins, which have no intrinsic value, and the ETF will track Bonk (BONK), Official Trump (TRUMP), and Dogecoin (DOGE), with Dogecoin currently being the tenth largest cryptocurrency by market capitalization.
In early July, REX Financial launched a Solana spot ETF, which includes exposure to staking rewards, earned by supporting the blockchain through staking tokens.
REX Financial CEO Greg King believes Solana is the story of stablecoin's future over Ethereum. He speaks with @EricBalchunas on "ETF IQ" https://t.co/aVEoiSkzfo pic.twitter.com/iQx9g4oYJg
King stated that Solana is "faster and designed for high concurrency processing," but has not been viewed as a stablecoin blockchain. Currently, stablecoins are mainly popular on its competitor Ethereum (ETH) blockchain.
He added, "Many people believe Solana is a promising contender to replace Ethereum. This view is highly controversial; just bringing it up may have earned me friends and created enemies."
King also mentioned that many cryptocurrency ETFs will hit the market in the coming months, and he believes there will be "a certain degree of explosion."
"In the ETF space, which other category will have six, eight, ten, or twelve institutions queuing up to repeatedly launch the same product like Bitcoin ETFs? The same goes for Ethereum ETFs; now it's Solana's turn," he added.
"These numbers will only continue to grow; I believe you will keep seeing this trend," King stated.
He also believes Solana is an "excellent candidate" for spot ETFs, pointing out its competition with Ethereum and "staking rewards far exceeding those of Ethereum," making it "very attractive" as a portfolio asset.
Currently, nine issuers have filed to launch a spot Solana ETF, including VanEck, Bitwise, Grayscale, 21Shares, CoinShares, Canary Capital, Franklin Templeton, Fidelity Investments, and a joint fund from Invesco and Galaxy Digital.
The U.S. Securities and Exchange Commission is expected to approve its trading as early as October. Analysts and participants in the prediction market generally believe these funds are almost certain to be approved.
Related: Willy Woo: Early whales are the culprits behind Bitcoin (BTC) "painful rises"
Original article: “REX CEO: ETF issuers must be cautious in selection, most cryptocurrencies are 'quite dubious'”
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