92 Crypto-Related ETFs Poised for SEC Approval as Market Awaits ‘Floodgates to Open’
The US Securities and Exchange Commission (SEC) is currently reviewing at least 92 crypto-related exchange-traded products (ETPs), signaling a potential surge in new crypto exchange-traded funds (ETFs) reaching the market soon. These funds aim to track a broad spectrum of cryptocurrencies, from major tokens like Solana (SOL) and XRP to popular altcoins such as Dogecoin, collectively representing trillions of dollars in market value.
Growing Number of Crypto ETF Filings
According to data from Bloomberg Intelligence ETF analyst James Seyffart, Solana and XRP are the most highly sought-after crypto assets among pending ETF applications, with eight proposals tracking SOL and seven focusing on XRP. In total, more than 90 crypto ETFs await the SEC’s decision, up from 72 applications reported in April 2024—indicating over 20 new filings submitted in just a few months.
These pending ETFs include three offerings that focus on the market’s giants Bitcoin (BTC) and Ether (ETH), while the remainder target a diverse range of altcoins. Notable names such as 21Shares and Grayscale are also in the running to get approval for Ether staking ETFs. This follows the SEC’s recent clarification that certain liquid staking activities fall outside its regulatory scope, paving the way for new staking-related investment products.
Grayscale is further seeking to convert five of its existing trusts into ETFs, including funds focused on Litecoin, Solana, Dogecoin, XRP, and Avalanche, comprising both publicly and privately traded trusts. Nate Geraci, president of NovaDius Wealth Management, aptly described the scene: “Look at all the crypto ETF filings out there… What I mean by ‘crypto ETF floodgates about to open soon.’”
Market analysts at Bitfinex have noted that broader rallies in altcoins might hinge on the SEC greenlighting more diversified crypto ETFs, underscoring the significance of this regulatory milestone for the crypto market’s next phase of growth.
BlackRock’s Dominance in the Crypto ETF Space
Global asset management giant BlackRock currently leads the crypto ETF landscape. Its iShares Bitcoin Trust ETF (IBIT) has attracted net inflows totaling $58.28 billion since launch, while its iShares Ethereum Trust ETF (ETHA) has gathered $13.12 billion, data from Farside Investors reveals.
Recent reports indicate that ETHA could soon surpass Coinbase as the largest institutional holder of ETH. Meanwhile, IBIT now holds over 3% of Bitcoin’s total circulating supply, reflecting BlackRock’s significant footprint in the cryptocurrency investment space.
Interestingly, BlackRock reportedly earns more annual fee revenue from its IBIT fund than from its flagship equities offering, the iShares Core S&P 500 ETF (IVV). The Bitcoin fund charges an expense ratio of 0.25%, considerably higher than IVV’s 0.03%, driving increased fee income despite the broader market volatility.
Looking Ahead
As the SEC reviews this large backlog of crypto ETF proposals, market participants eagerly await regulatory clarity and approvals that could unlock new retail and institutional investment flows into cryptocurrencies beyond Bitcoin and Ethereum.
With major players like BlackRock setting the pace and a wave of new altcoin-focused ETFs lined up, the US crypto investment landscape appears primed for transformative growth. The coming months could well mark the opening of a new chapter for mainstream crypto adoption within regulated financial markets.
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This article is based on recent reporting and data from Bloomberg Intelligence and Farside Investors, with insights from industry experts and market analysts.