The Latest in Crypto ETF Filings

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Exploring New Crypto ETF Proposals

While all eyes may be on the Fed rate decision today, the world of cryptocurrency is also buzzing with activity surrounding the latest ETF filings.

Proposals for Solana and XRP ETFs have surfaced shortly after the successful launches of US spot bitcoin and ether ETFs in 2024. Additionally, there have been movements in the litecoin fund plan, as well as new proposals for ETFs holding assets such as DOGE, BONK, and even Trump’s memecoin. Tuttle Capital Management has also entered the fray with leveraged ETFs tied to 10 different crypto assets.

Bitwise recently filed for a dogecoin ETF, while Cboe has re-filed its solana ETF proposals from various firms, although the SEC seems hesitant to consider them.

Regulatory Hurdles and Potential Progress

Speculation suggests that Elon Musk’s support for DOGE could expedite the approval process for Bitwise’s ETF proposal. However, there are still uncertainties regarding the SEC’s approach to the “Winklevoss standard,” which stems from the rejection of the Winklevoss twins’ bitcoin ETF proposal in 2018.

The SEC has traditionally required a regulated futures market of significant size, a criterion currently met only by BTC and ETH. The potential launch of SOL and XRP futures contracts by CME Group could impact the SEC’s stance on new crypto ETF filings.

Leadership Changes at the SEC

With Mark Uyeda currently serving as acting SEC chair and the pending confirmation of Paul Atkins as the agency’s new leader, there may be shifts in the regulatory approach to crypto products. Atkins, characterized as “pro-innovation,” is expected to evaluate proposed crypto products on a case-by-case basis, potentially leading to a slow rollout of approvals.

Adrienne Gurley, a former SEC senior counsel, anticipates close coordination between the SEC and CFTC in establishing guidelines for crypto ETFs. While there may not be an immediate response to the recent filings, Gurley foresees a gradual approval process in the future.