As Gary Gensler prepares to step down as SEC Chair on January 20, the cryptocurrency industry has flooded the Securities and Exchange Commission (SEC) with a wave of exchange-traded fund (ETF) submissions. This sudden influx of filings reflects growing anticipation of a potential regulatory pivot under the incoming Trump administration, which is expected to take a more crypto-friendly stance.
ETF Applications Flood the SEC
On January 17 alone, at least four cryptocurrency ETF proposals were submitted, signaling a race to gain regulatory approval amid the transition in leadership at the SEC. Among the notable filings:
• ProShares, the asset manager behind the first Bitcoin-linked ETF, filed an application for a Solana Futures ETF. This product aims to provide investors with exposure to Solana’s native cryptocurrency, SOL, through futures contracts rather than direct ownership of the asset. However, questions remain about market readiness. “Interesting because there aren’t CME futures yet, and I’m not sure if the Coinbase SOL futures are large and liquid enough,” commented ETF analyst James Seyffart on X (formerly Twitter).
• Volatility Shares, another asset manager, had already submitted a similar Solana Futures ETF application in December. Despite these filings, Seyffart noted that Solana ETFs may not launch in the U.S. until 2026, even with a more favorable regulatory environment.
Key Filers and Their Proposals
Several other investment firms have joined the ETF rush, filing applications for products linked to a variety of cryptocurrencies and digital asset strategies:
1. CoinShares filed for the “CoinShares Digital Asset ETF,” which will track its proprietary Compass Crypto Market Index. CoinShares, formerly known as Valkyrie Funds, is a digital asset manager with a history of innovation in the crypto investment space.
2. ProShares also submitted filings for a range of ETFs tied to XRP, including leveraged, inverse, and futures products. This move comes as XRP gains attention following legal victories and increasing adoption.
3. Tidal DeFi, an asset management firm focused on decentralized finance, proposed the Oasis Capital Digital Asset Debt Strategy ETF (DADS). This fund intends to invest in debt instruments issued by companies operating in the crypto ecosystem, such as miners, energy firms, utilities, and payment platforms.
4. VanEck applied for its “Onchain Economy” ETF on January 15. This fund aims to invest in a wide array of crypto-focused companies, including software developers, exchanges, mining companies, infrastructure providers, and payment platforms.
What’s Driving the Filing Frenzy?
Industry observers see the flurry of ETF filings as a reaction to Gensler’s imminent departure and the perceived opportunity for a more accommodating regulatory environment under new leadership. Gensler’s tenure, which began in April 2021, was marked by aggressive enforcement actions, including lawsuits against major crypto exchanges Coinbase and Binance, as well as a crackdown on unregistered securities offerings.
Eric Balchunas, a senior ETF analyst, noted the significance of the timing: “Gensler wasn’t even out of the building for five minutes, and the ETF industry unloaded a massive crypto filing frenzy. Half a dozen so far.”
The Road Ahead for Crypto ETFs
Despite the optimism surrounding these filings, the road to approval remains uncertain. Regulatory scrutiny, market infrastructure, and liquidity considerations will all play pivotal roles in determining the success of these applications. For example, while interest in Solana Futures ETFs is growing, analysts like Seyffart question whether sufficient market liquidity exists for these products to gain approval in the near term.
As Gensler prepares to step down, the crypto industry is clearly positioning itself for a potential shift in the regulatory landscape. Whether the new administration’s policies will lead to quicker ETF approvals remains to be seen, but one thing is certain: the race to launch crypto-focused ETFs is heating up.
