- The SEC will review over 70 crypto ETFs this year as institutional demand for crypto grows.
- Altcoin and meme coin ETFs face uncertain adoption despite growing institutional interest.
- New SEC chair Paul Atkins will make key decisions on crypto ETF listings and asset regulation.
More than 70 cryptocurrency exchange-traded funds (ETFs) are up for review by the U.S. Securities and Exchange Commission this year. This marks one of the largest crypto ETF review periods in SEC history. Applications include funds based on altcoins, meme tokens, and complex derivatives.
The growing list includes digital assets such as Solana, XRP, and Litecoin. Even meme coins like Dogecoin and Bonk are under consideration. Several funds propose structured exposure using options and leveraged instruments. Asset managers hope to meet rising investor demand for diverse crypto products.
Investors Eye Crypto Expansion
A March survey by Coinbase and EY-Parthenon found over 80% of institutions plan to increase crypto allocations by 2025. This growing interest is driving ETF proposals across a wide range of assets. However, analysts say approvals do not guarantee investor adoption.
Funds based on less established cryptocurrencies may face slower uptake. Institutions may prefer assets with stronger track records or regulatory clarity. Even so, the rush to file ETF applications highlights growing demand for alternative crypto exposure.
Staked Solana Enters ETF Market
On April 21, ARK Invest added staked Solana to two existing ETFs. This makes it the first time spot Solana is available to U.S. investors through an ETF. Analysts consider this a milestone, though expected inflows remain modest compared to Bitcoin.
Altcoin ETFs may attract between $300 million and $1 billion in cumulative inflows. This remains far below the $100 billion seen in Bitcoin spot ETFs last year. Still, ETF issuers continue to expand offerings to capture market share.
New SEC Chair Faces Critical Decisions
Paul Atkins, the new SEC Chair, will oversee the ETF review process. He replaces acting Chair Mark Uyeda, who made early moves to clarify the SEC’s stance on meme coins.
The agency signaled in February that it does not classify meme coins as securities. However, it has not determined if such assets are suitable for ETFs. Applications now cover 15 cryptocurrencies beyond Bitcoin and Ethereum.
These include high-cap tokens like Dogecoin, XRP, and Solana. Proposals also feature lesser-known tokens like Pengu and Official Trump. Analysts say Atkins may face pressure to define which cryptocurrencies qualify as commodity-based trusts. His decisions could shape how crypto fits into regulated U.S. financial markets for years to come.
