Crypto ETF Filings Surge as Gensler’s SEC Tenure Nears End
As Gary Gensler prepares to step down as Chair of the US Securities and Exchange Commission (SEC) on Jan. 20, the cryptocurrency industry is seizing the moment to push a wave of exchange-traded fund (ETF) filings.
This surge comes just before President-elect Donald Trump takes office, with his administration expected to adopt a more crypto-friendly regulatory stance.
A Flood of ETF Filings
On Jan. 17, at least four cryptocurrency-focused ETF proposals were submitted to the SEC, reflecting a renewed optimism for the industry. ProShares, known for introducing the first Bitcoin-linked ETF, filed for a Solana (SOL) Futures ETF. This proposed fund would give investors exposure to Solana’s price movements via futures contracts rather than direct ownership.
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James Seyffart, an ETF analyst, raised questions about the practicality of such a fund, noting the absence of CME futures for Solana and the limited liquidity of Coinbase’s SOL futures. “Interesting because there aren’t CME futures yet and I’m not sure if the Coinbase SOL futures are large and liquid enough,†Seyffart commented on X.
Volatility Shares had filed a similar Solana fund application in December, but Seyffart remains cautious, predicting that Solana ETFs may not launch in the U.S. until 2026, even under a more favorable regulatory environment.
Broader ETF Momentum
The filings on Jan. 17 also included a submission by CoinShares, a digital asset manager, for the “CoinShares Digital Asset ETF,” which would track its proprietary Compass Crypto Market Index.
ProShares added to its efforts by filing for leveraged, inverse, and futures ETFs linked to XRP. These filings come amid a wave of interest in spot XRP ETFs, with firms like Bitwise, 21Shares, Canary Capital, and WisdomTree submitting applications earlier.
Tidal DeFi joined the rush with its Oasis Capital Digital Asset Debt Strategy ETF (DADS), designed to invest in debt instruments tied to crypto-related companies, including miners and payment platforms.
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On Jan. 15, asset manager VanEck filed for the “Onchain Economy” fund, aiming to invest in a diverse portfolio of crypto-focused businesses, including software developers, exchanges, and payment providers.
Shifting Regulatory Environment
Gary Gensler’s departure signals a potential shift in regulatory tone for the cryptocurrency sector. His tenure, beginning in April 2021, was marked by high-profile lawsuits against Coinbase and Binance and a crackdown on unregistered securities. However, Gensler’s exit, alongside the resignation of SEC Chief of Staff Amanda Fischer and IRS Commissioner Daniel Werfel, has led to speculation about a regulatory reset under Trump’s administration.
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Analyst Eric Balchunas noted the flurry of filings in the final days of Gensler’s leadership. “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,†Balchunas tweeted.
Anticipation for Change
The anticipation of a more crypto-friendly regulatory environment under President-elect Trump is fueling industry optimism. Nate Geraci, president of The ETF Store, highlighted the strategic timing of these filings, emphasizing the importance of aligning with a potentially favorable SEC leadership.
The coming months will be pivotal for the crypto industry as it navigates regulatory shifts and strives for approval of these innovative financial products. Whether these efforts will lead to a breakthrough in the U.S. market remains to be seen.
