Explore Lucrative Long/Short Opportunities with New Altcoin ETFs

In the coming months, the approval of new spot altcoin ETFs by the U.S. Securities and Exchange Commission (SEC) could pave the way for intriguing long/short opportunities, according to K33, a crypto brokerage and research firm. Alongside this, K33 announced the initiation of a new share offering to raise at least $8.9 million, aiming to acquire 1,000 Bitcoin (BTC) $105,740 for its corporate treasury. The company plans to use these funds to accelerate Bitcoin purchases and bolster operational leverage.

Altcoin ETF Approvals to Bring Opportunities in SOL and LTC

The SEC has contacted eight issuers who applied for a spot ETF for Solana $146 (SOL), requesting that their updated applications incorporate staking language. According to K33’s Vice President of Research, Vetle Lunde, this signals that regulatory approval is near, enhancing the likelihood of staking inclusion in both Ethereum (ETH) $2,427 and Solana ETFs. Solana is not alone; various altcoin ETF applications have also been submitted for Litecoin (LTC), XRP, and Dogecoin $0.166925 (DOGE).

Lunde also noted the “Grayscale effect,” a key dynamic observed in the launch of Bitcoin and Ethereum ETFs, where a significant percentage of Grayscale’s existing fund assets flowed into the market and more than 50% sold within 200 days. However, for potential new altcoin ETFs, Grayscale presents important differences. Unlike XRP and Dogecoin funds, Grayscale’s funds for Solana and Litecoin are currently traded publicly, so comparisons are made with these publicly traded funds.

Lunde highlighted that the Solana fund launched by Grayscale in 2023 has never traded at a discount and holds only 0.1% of the SOL supply, thus minimizing the risk of market saturation or exit sales. In contrast, the Litecoin fund frequently trades at a discount, holds 2.65% of LTC supply, and faces renewed discount pressure following recent “in-kind” fund creation moves. Currently, only Canary Capital and CoinShares have applied for a Litecoin ETF, meaning fewer issuers are present to absorb potential exits.

Lunde predicts a cleaner ETF period for Solana, whereas the risk of similar exits and selling pressure observed with GBTC and ETHE exists for Litecoin. Therefore, if simultaneous ETF approvals occur, long opportunities in SOL and short opportunities in LTC appear attractive.

K33 Steadily Expands Bitcoin Treasury

Meanwhile, K33 has initiated a share offer aimed at raising at least $8.9 million to purchase Bitcoin, as part of its corporate treasury goal to acquire 1,000 BTC (worth $105 million). The company stated that this move would reveal operational leverage as a brokerage, boost profit margins, facilitate new product offerings, and enhance the ability to attract larger institutional clients.

The offering is priced at 0.1036 Swedish krona per share, with upfront commitments from existing and new investors, including CEO Torbjørn Bull Jenssen contributing $115,000. If demand is strong, the open-ended offer, subject to a discretionary upper limit, would allow K33 to raise funds above the minimum.

Jenssen highlighted, “This fundraising is a significant milestone toward our initial target of acquiring 1,000 BTC before further expansion,” adding, “We strongly believe that Bitcoin represents the future of global finance and are positioning K33 to fully benefit from it.”

K33’s Bitcoin treasury plan began on May 28 with initial funding of $6.3 million secured through a combination of stock issuance and convertible loans with coupon bonds. The company’s first Bitcoin purchase was made on June 3, buying 10 BTC worth around $1 million.

Since then, K33 has grown its Bitcoin treasury with the purchase of an additional 10 BTC. As of June 18, the company’s holdings increased to 25 BTC (worth $2.6 million) with the announcement of an additional acquisition of 5 BTC valued at approximately $522,000. Jenssen stated, “We expect Bitcoin to be the best-performing asset in the coming years and will build our balance sheet in forward-looking alignment with Bitcoin. This will provide K33 with direct exposure to Bitcoin’s price and help unlock strong synergies with our brokerage operations.”