- Wall Street’s crypto shift grows with 92 ETFs pending SEC approval, diversifying assets.
- Solana, XRP, and Dogecoin are spearheading a new surge of altcoin-focused ETF filings.
- SEC’s caution slows down the growth of crypto ETFs, but institutional interest rises.
The United States is witnessing a surge in cryptocurrency exchange-traded fund (ETF) filings, with 92 crypto ETFs awaiting SEC approval. This increase highlights Wall Street’s growing interest in digital assets, as firms aim to provide institutional investors with regulated products that offer exposure to cryptocurrency. The filings range from Bitcoin and Ethereum-focused ETFs to those targeting altcoins and thematic blockchain baskets. This trend indicates that crypto ETFs are emerging as a mainstream investment vehicle, shifting exposure from self-custody and exchanges to regulated financial products.
Among the various filings, some focus on altcoins such as Solana (SOL), XRP, and Dogecoin, demonstrating the broader interest beyond just Bitcoin (BTC) and Ethereum (ETH). Solana alone has nine pending ETF applications, while XRP has eight.
The Expansion Beyond Bitcoin and Ethereum
Historically, Bitcoin and Ethereum have dominated the crypto ETF market, and the most recently filed applications have signaled diversification of crypto exposure. The movement towards the use of altcoins like Solana, XRP, and Dogecoin in ETFs has increased since investors seek broader exposure to the crypto market.
Additionally, 21Shares and Grayscale are already trying to have Ether staking ETFs approved, which may introduce more innovation to the market. Such a regulatory drive serves to underscore the fact that the crypto ETF space is continuing to develop, with its product offerings starting to resemble those of traditional financial markets.
The Future of Crypto ETFs: Will the Market Saturate?
Although there is an institutional shift in the number of crypto ETF filings, there is a question of whether this trend will be sustainable. With such a surge in filings, one would question whether the market will reach saturation, especially among altcoin-focused ETFs. Historically, ETF markets have seen many niche products struggle with low liquidity. The same could happen in crypto, where a few ETFs capture most institutional capital while others remain underutilized.
Despite this, according to some experts, the number of filings itself is indicative of real interest in diversified crypto exposure. There is an increasing demand from investors for regulated, liquid products that provide safer access to digital assets. The current SEC approach, focused on ensuring investor protection and compliance, has extended the timeline for approvals. It remains uncertain which ETFs will gain approval as SEC scrutiny intensifies. These delays underscore the SEC’s complex challenges issuers undergo during the approval process.
Related: Crypto ETFs Open Regulated Path for Digital Asset Investors
The Role of Crypto ETFs in Institutional Adoption
Crypto ETFs can become a central instrument through which institutional investors can gain access to digital assets. The products provide a controlled framework that is attractive to conventional financial institutions, which have traditionally been reluctant to deal with direct crypto. Under crypto ETFs, investors have the opportunity to be exposed to the crypto market using familiar financial products, instead of self-custody solutions and unregulated exchanges.
The global asset manager BlackRock has become a market leader in crypto ETFs, and its Bitcoin and Ethereum ETFs have attracted substantial inflows. Its Bitcoin investment fund, the iShares Bitcoin Trust ETF (IBIT), has recorded over $58 billion in net inflows, and its Ether fund, the iShares Ethereum Trust ETF (ETHA), has raised over $13 billion. The trend is an indication of increased confidence in crypto ETFs among institutional investors, who are increasingly seeking methods to integrate digital assets into their portfolios.
