A New Wave of Crypto ETF Applications Flood the SEC
As Gary Gensler’s tenure at the SEC came to an end, the crypto industry saw a surge in new ETF applications being submitted to the regulatory agency. This wave of filings, which occurred after US business hours on Friday, coincided with Gensler’s final day as the chair of the SEC.
Notable Filings
Among the new filings, Tidel Finance introduced the “Oasis Capital Digital Asset Debt Strategy ETF” (DADS), focusing on debt securities tied to various sectors in the digital asset space. ProShares also submitted a filing for a Solana Futures ETF, following a previous filing by VolatilityShares. CoinShares entered the fray with a proposal for the “CoinShares Digital Asset ETF,” while VanEck announced plans for an actively managed “Onchain Economy ETF” targeting blockchain-powered businesses.
ETF analyst Eric Balchunas noted, “Gensler wasn’t even out of the building for 5 minutes and the ETF industry unloaded a massive crypto filing frenzy. Half a dozen so far.”
Optimism Amid Leadership Transition
The timing of these filings suggests a sense of optimism within the crypto industry regarding a potentially more favorable regulatory environment under the incoming SEC leadership. Paul Atkins, who is slated to replace Gensler, is known for his support of innovation in the crypto space. With Donald Trump set to return to the presidency, speculation is mounting that executive orders addressing key challenges faced by the industry could be on the horizon.
XRP, in particular, has seen a surge in value ahead of Gensler’s exit, fueled by anticipation of an XRP ETF approval and potential policy shifts under the new administration. Despite Gensler’s departure, his concerns about the industry’s safety and misconduct were evident until the end, as seen in his imposition of a $38 million fine on the Digital Currency Group and his appeal of a court ruling regarding XRP sales.
Looking Ahead
With industry leaders gearing up for potential changes in the regulatory landscape, the recent wave of ETF applications signifies a pivotal moment for the future of crypto regulation in the United States. As the new SEC leadership takes the reins, the industry remains hopeful for a more supportive environment that fosters innovation and growth.