ETF issuers have submitted applications to the SEC, possible hoping the Commission would be more lenient following Gensler’s departure.
The number of crypto exchange-traded fund (ETF) applications has significantly increased. According to an X post from Eric Balchunas, a Senior ETF Analyst for Bloomberg, the United States Securities and Exchange Commission (SEC) is currently reviewing 33 crypto ETFs. Balchunas noted on Tuesday that “the list doubled since Gensler left the building on Friday”.
Balchunas was responding to a post from James Seyffart, also an ETF analyst for Bloomberg. Seyffart posted a list of the 33 ETF applications, several from notable applicants like Grayscale, Franklin Templeton, 21Shares, Bitwise, and ProShares.
The list also shows a variety of assets. For instance, Grayscale submitted two applications, one for Solana (SOL) and the other for a basket of assets. Hashdex and Franklin submitted applications for ETFs that combine Bitcoin (BTC) and Ether (ETH), while Canary and 21Shares have XRP applications. Furthermore, Litecoin (LTC) and XRP appear under additional Canary applications, while ProShares has applications for SOL and XRP futures. There are also ETF applications for memecoins like BONK, DOGE, and TRUMP. As of this writing, none of the submissions have reached their final deadlines.
Unfortunately, Balchunas predicts that Bitcoin ETFs will likely retain most crypto ETF funds. In a follow-up post, he states that “the bulk of the money will still be in and go to spot Bitcoin ETFs” even if all the applications are approved. Balchunas likened the situation to the commodity market where gold is the dominant asset, even though there is silver, and other “fringe stuff” like corn, cocoa, palladium, wheat, and live cattle. He submits:
“There’s even been attempts at aluminum and nickel. [However] the market picks the winners and losers and it generally favors the more mainstream stuff. I see something similar playing out here.”
Balchunas thinks ETH is the obvious choice for which asset will fit the “Silver” description. However, he adds that XRP and Solana could become worthy competitors in a year or two.
New ETF Applications
REXShares and Ospreys Funds submitted their applications less than 48 hours after President Donald Trump’s inauguration. While the filing notes that specific details may change, the current plan is for the new funds to invest a minimum of 80% in the specified crypto assets and may use direct holdings, futures contracts, or swap agreements. The REX-Osprey applications include one each for TRUMP, ETH, BTC, SOL, XRP, BONK, and DOGE.
After the announcement of these filings, BONK jumped 15% in 24 hours, while DOGE rose by more than 6%. The general memecoin market cap rose by over 5% to about $121 billion.
Many crypto enthusiasts believe that the Trump administration would be positive for the crypto industry, especially since Trump made several promises during his campaign. However, despite expectations from members of the crypto community, none of the 200 executive orders signed shortly after his inauguration were crypto-related. Nonetheless, there is speculation that Trump may issue an executive order banning central bank digital currencies (CBDCs). He has previously described them as a “dangerous threat to freedom.”
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