K33 plans to raise at least 8.9 million dollars to increase its holdings of Bitcoin.

Gate News bot news, digital asset brokerage and research firm K33 stated that as the SEC increasingly focuses on encryption, new Spot altcoin ETFs may be launched in the coming months, and these approvals could open up some attractive long and short strategies.

Eight issuers have already submitted applications for Solana spot ETFs, and the SEC is reaching out to these asset managers to ask them to include staking clauses in their updated applications. Vetle Lunde, head of research at K33, noted that this indicates increasing regulatory engagement and also increases the likelihood that staking will be part of Ethereum and Solana ETFs. Solana isn’t alone — a variety of other underlying crypto assets have also submitted applications, including LTC, XRP, and DOGE.

Lunde stated that Grayscale’s Solana trust launched in 2023 has never traded at a discount and holds only 0.1% of the Solana supply, thus minimizing the risk of market flooding or redemption-driven sell-offs. In contrast, its LTC trust often trades at a discount, holding 2.65% of the LTC supply, and is facing discount pressure again after recent physical redemptions. Additionally, he mentioned that so far, only Canary Capital and CoinShares have applied for a Litecoin ETF, leaving fewer issuers capable of absorbing potential capital outflows.

Lunde believes this indicates that the ETF setup for Solana is clearer, while the Litecoin product faces a risk of capital outflow after its launch, similar to the situation with GBTC and ETHE after conversion. Therefore, he stated that trading long SOL and short LTC after the ETF launch looks very attractive, especially in the case of them being listed simultaneously.

Meanwhile, on Wednesday, K33 launched a new targeted issuance aimed at raising at least 85 million Swedish Krona (8.9 million USD) to purchase Bitcoin, as part of its broader goal of acquiring 1,000 Bitcoin (105 million USD) for corporate finance. The company stated that this move would unleash operational leverage as a broker, improve profit margins, support the launch of new products, and enhance its ability to attract large institutional clients.

Source: The Block