New spot altcoin ETFs could unlock compelling directional strategies, says K33

With new spot altcoin exchange-traded funds potentially set to launch in the coming months under a more crypto-friendly Securities and Exchange Commission, approvals could open up some compelling long/short strategies, according to digital asset brokerage and research firm K33.

Eight issuers have filed for spot Solana ETFs, with the SEC proactively reaching out to the asset managers to request that they include staking language in their updated applications. This suggests growing regulatory engagement and raises the chances that staking could be part of both Ethereum and Solana ETFs, Lunde noted. Solana isn't alone either — there are also filings for various other underlying crypto assets, including LTC, XRP, and DOGE.

A key dynamic in the earlier launches of Bitcoin and Ethereum ETFs was the "Grayscale effect," Lunde said, where its large existing trust holdings flooded the market upon conversion to an ETF, and over 50% of its assets under management were sold within 200 days. However, there are important differences in Grayscale's ownership regarding the potential new ETF additions. Unlike XRP and Dogecoin, Grayscale's Solana and Litecoin trusts have been publicly traded, making them the closest comparisons, he said.

Long SOL, Short LTC?

Grayscale's Solana trust, launched in 2023, has never traded at a discount and holds just 0.1% of the SOL supply — minimizing the risk of market flooding or redemption-driven selling, Lunde said. In contrast, its Litecoin trust has frequently traded at discounts, holds a 2.65% share of LTC supply, and saw renewed discount pressure after recent in-kind creations. Additionally, only Canary Capital and CoinShares have filed for a Litecoin ETF so far, leaving fewer issuers to absorb potential outflows, he added.

This suggests a cleaner ETF setup for Solana, while Litecoin products risk post-launch outflows, mirroring those seen post-conversion by GBTC and ETHE, Lunde argued. Therefore, a long SOL, short LTC trade post-ETF launch looks appealing, he said, especially if they debut simultaneously.

K33 seeks to raise $8.9 million via share issuance in a step toward 1,000 BTC treasury target

On Wednesday, K33 launched a new directed share issue to raise at least SEK 85 million ($8.9 million) to buy bitcoin as part of its broader target to acquire 1,000 BTC ($105 million) for its corporate treasury. The move will unlock operational leverage for the company as a broker,  enhance margins, enable new product offerings, and improve its ability to attract larger institutional clients, it said.

The offering is priced at SEK 0.1036 per share — matching the stock's closing price on Tuesday — and is backed by pre-commitments from both existing and new investors, including €100,000 ($115,000) from CEO Torbjørn Bull Jenssen. The offer is open-ended, allowing K33 to raise more than the minimum if demand is strong, but it is subject to a cap at the company's discretion.

"This raise marks a major milestone towards our initial goal of acquiring 1,000 BTC before scaling further," Jenssen said. "We strongly believe that bitcoin represents the future of global finance and are positioning K33 to benefit maximally from this."

K33's bitcoin treasury strategy was launched on May 28, backed by SEK 60 million ($6.3 million) in initial financing, which was secured via a combination of equity issuance and zero-coupon convertible loans. The company executed its first bitcoin purchase on June 3, acquiring 10 BTC for approximately SEK 10 million ($1 million). 

Since then, K33 has increased its bitcoin treasury with a further 10 BTC purchase, and as of June 18, the firm now holds 25 BTC ($2.6 million), having bought an additional 5 BTC for roughly SEK 5 million ($522,000), also announced on Wednesday.

"We expect bitcoin to be the best-performing asset in the coming years and will build our balance sheet in bitcoin moving forward. This will give K33 direct exposure to the bitcoin price and help unlock powerful synergies with our brokerage operation," Jenssen said.

K33's operational headquarters are in Norway, but its parent company is listed on the Nasdaq First North Growth Market in Stockholm, Sweden.