What Happened?
The U.S. SEC is currently reviewing up to 72 crypto-related ETFs, covering assets ranging from mainstream cryptocurrencies (such as XRP and Solana) to meme coins (like Dogecoin), and even including derivative products, indicating the broadness of market offerings. Despite the large number of new applications, analysts generally believe that Bitcoin ETFs, which currently account for about 90% of the global cryptocurrency fund market’s assets, are unlikely to be challenged in their dominant position by these emerging crypto ETFs in the short term. Although the approval of these ETFs is expected to bring attention and liquidity to the corresponding alternative coins, their overall market size and fundraising capacity are anticipated to be far less than the successful record of Bitcoin ETFs; however, specific derivative product ETFs may be more favored by institutions.
Crypto ETF Applications Surge! 72 Crypto ETFs Knock on SEC’s Door
As the U.S. Securities and Exchange Commission (SEC) becomes increasingly open to cryptocurrency-related investment products, the market is witnessing a wave of new exchange-traded fund (ETF) applications. Bloomberg analyst Eric Balchunas stated on social media platform X that there are currently as many as 72 cryptocurrency-related ETF proposals awaiting SEC approval for listing or options trading. The asset classes of these pending ETFs can be described as having “everything,” with proposals ranging from mainstream cryptocurrencies like XRP, Litecoin, and Solana (SOL), to highly topical meme coins like Dogecoin (Doge), and even more peculiar tokens like Penguins and “2x Melania,” as well as complex structured products utilizing derivatives like options. Eric described it as “going to be a wild year.”
There are now 72 crypto-related ETFs sitting with the SEC awaiting approval to list or list options. Everything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between. Gonna be a wild year. Great roundup from @JSeyffpic.twitter.com/IHTqqxeH35— Eric Balchunas (@EricBalchunas) April 21, 2025
This wave of applications reflects the growing interest among institutional investors in cryptocurrencies as an asset class. According to a report released in March by Coinbase and Ernst & Young, over 80% of institutions indicated plans to increase their allocation to cryptocurrencies by 2025. Recently, asset management firm ARK Invest has included staked Solana in its two existing ETF portfolios, marking the first time U.S. investors can indirectly hold spot SOL through an ETF.
With the Surge of Cryptocurrency ETFs, Can They Replicate Bitcoin’s Splendid Achievements?
However, despite the considerable number of applications and the high institutional interest, analysts generally maintain a cautious attitude, believing that even if these alternative coin ETFs are approved, they may not replicate the success of Bitcoin ETFs. Eric likened the concept of turning cryptocurrencies into ETFs to putting a band’s song on a music streaming platform, stating that “it doesn’t guarantee anyone will listen, but it does ensure your music reaches a vast majority of the audience.” Currently, Bitcoin ETFs dominate the global cryptocurrency fund market; despite a recent outflow of funds in the U.S., the total net assets of Bitcoin ETFs still reach $94.5 billion.
In contrast, Katalin Tischhauser, the research head at Sygnum Bank, estimates that the cumulative inflows for all alternative coin ETFs may only be in the hundreds of millions to a billion dollars, far less than the scale of Bitcoin ETFs. Analysts point out that in order to challenge Bitcoin’s position, these new crypto ETFs need to provide more significant added value. While the launch of Ethereum ETF options has indeed attracted some new liquidity, it has not changed Bitcoin’s dominant position in the institutional market.
Among the 72 proposals currently awaiting review, many pertain to derivative products based on existing ETFs rather than entirely new spot cryptocurrency ETFs. Some analysts estimate that even if all these alternative coin ETFs are successfully listed, they might collectively only capture 5% to 10% of the market share from Bitcoin. Nevertheless, this does not mean that these cryptocurrency ETF attempts are futile. Their launch, particularly the actions of issuers purchasing tokens to support the ETFs, can indeed bring new inflows and market attention to the related cryptocurrencies. For instance, if ETFs for XRP or Solana are approved, they may potentially trigger a new bull market in the cryptocurrency space.
In the coming year, the regulatory developments surrounding cryptocurrencies and the market responses to related investment products will be focal points worth closely monitoring.
References: cointelegraph, beincrypto