Surge in Cryptocurrency ETF Applications: 155 Proposals for 35 Assets
The recent rise in cryptocurrency fund applications indicates a burgeoning market with significant backing from both Bitcoin and Solana.
A significant increase in cryptocurrency exchange-traded fund (ETF) applications has been observed, with 155 filings awaiting approval. This surge, documented on October 21, suggests a potential launch of over 200 new funds that will track 35 different digital assets within the coming year.
The Coming Wave of Crypto Funds
Eric Balchunas, a senior ETF analyst at Bloomberg, shared a detailed list of these proposed funds on platform X, calling the multitude of filings a “total land rush” by financial firms. Leading the list with 23 applications each are Solana (SOL) and Bitcoin (BTC), followed closely by Ripple’s XRP at 20 filings, and Ethereum (ETH) with 16.
Other notable mentions include applications for Litecoin (LTC) tracking funds, which number five, while Dogecoin (DOGE), Avalanche (AVAX), and Polkadot (DOT) each have three proposals. Even unique assets like the Official TRUMP meme coin are in the mix, with two ETF filings.
Despite this rapid expansion, traditional investors may find the growing number of individual tokens overwhelming. Nate Geraci, co-founder of the ETF Institute, highlighted that mainstream investors might prefer a “shotgun approach”—using diversified funds that mitigate risk across multiple cryptocurrencies, akin to stock market index funds.
“No way tradfi investors ready to navigate all of these single tokens,” he noted.
This growing interest coincides with successful performance from initial crypto ETFs, suggesting a vibrant market. As of October 21, spot Bitcoin ETFs secured $477 million in new investments, while spot Ethereum products attracted $142 million, based on data from SoSoValue. New altcoin ETFs launched recently are also generating notable results, with REX-Osprey’s XRP and DOGE ETFs accumulating $24 million and $6 million in first-day volumes respectively, significantly exceeding analyst expectations.
A notable trend involves substantial Bitcoin holders, known as “whales,” reallocating their investments into these ETF products. This process enables them to exchange their actual Bitcoin for ETF shares without incurring tax liabilities. BlackRock is purportedly managing over $3 billion for these conversions.
Even with a flourishing pipeline, the timeline for final approvals on many of these funds remains uncertain due to external factors, such as the ongoing U.S. government shutdown, which may delay the approval process.
