What Happened?
The U.S. SEC is reviewing up to 72 cryptocurrency-related ETFs, covering assets ranging from mainstream cryptocurrencies (like XRP and Solana) to meme coins (such as Dogecoin), and even including derivative products, indicating the broad spectrum of market offerings. Despite the large number of new applications, analysts generally believe that Bitcoin ETFs, which currently account for about 90% of the global cryptocurrency fund market, will not be challenged in their dominance by these emerging cryptocurrency ETFs in the short term. While the approval of these ETFs is expected to bring attention and liquidity to the corresponding alternative coins, their overall market size and fundraising capacity are anticipated to fall far short of Bitcoin ETFs’ successful record; however, specific derivative product ETFs may be more favored by institutional investors.
A Surge in Crypto ETF Applications! 72 Crypto ETFs Knock on the SEC’s Door
As the U.S. Securities and Exchange Commission (SEC) becomes increasingly open to cryptocurrency-related investment products, the market is experiencing a wave of new applications for exchange-traded funds (ETFs). Bloomberg analyst Eric Balchunas posted on social media platform X, stating that there are currently as many as 72 cryptocurrency-related ETF proposals awaiting SEC approval to list or begin options trading. The asset categories of these pending ETFs can be said to encompass “everything,” with proposals ranging from mainstream cryptocurrencies like Ripple (XRP), Litecoin, and Solana (SOL) to topical meme coins like Dogecoin, and even including more unusual tokens such as Penguins and “2x Melania,” as well as complex structured products utilizing derivatives like options. Eric described, “This is going to be a wild year.”
There are now 72 crypto-related ETFs sitting with the SEC awaiting approval to list or list options. Everything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between. Gonna be a wild year. Great roundup from @JSeyffpic.twitter.com/IHTqqxeH35— Eric Balchunas (@EricBalchunas) April 21, 2025
This wave of applications reflects the growing interest of institutional investors in cryptocurrencies as an asset class. According to a report released in March by Coinbase and Ernst & Young, over 80% of institutions indicated plans to increase their allocation to cryptocurrencies in 2025. Recently, asset management firm ARK Invest has included staked Solana in the portfolios of two of its existing ETFs, marking the first time U.S. investors can indirectly hold spot SOL through an ETF.
Can the Crypto ETF Boom Replicate Bitcoin’s Glorious Achievements?
However, despite the substantial number of applications and heightened institutional interest, analysts generally hold a cautious outlook, believing that even if these alternative coin ETFs gain approval, they may not replicate the success of Bitcoin ETFs. Eric characterizes the concept of turning cryptocurrencies into ETFs as akin to a band’s song being placed on a music streaming platform: “It doesn’t guarantee anyone will listen, but it does allow your music to reach a vast majority of listeners.” Currently, Bitcoin ETFs hold absolute dominance in the global cryptocurrency fund market, and although there has been capital outflow in the U.S. in recent months, the total net assets of Bitcoin ETFs still amount to $94.5 billion.
In contrast, Katalin Tischhauser, head of research at Sygnum Bank, estimates that the cumulative inflow of all alternative coin ETFs may only range from hundreds of millions to $1 billion, far less than the scale of Bitcoin ETFs. Analysts point out that to challenge Bitcoin’s position, these new cryptocurrency ETFs need to offer more significant added value. While the launch of Ethereum ETF options has indeed attracted some new liquidity, it has not changed Bitcoin’s dominance in the institutional market. Among the 72 proposals currently awaiting review, many are derivative products based on existing ETFs, rather than entirely new spot cryptocurrency ETFs. Some analysts estimate that even if all these alternative coin ETFs successfully list, they may only capture 5% to 10% of the market share from Bitcoin.
However, this does not mean that the attempts of these cryptocurrency ETFs are futile. Their launch, particularly the issuers purchasing tokens to support the ETFs, can indeed bring new capital inflows and market attention to the relevant cryptocurrencies. For example, if XRP or Solana ETFs are approved, it could potentially trigger a new bullish market for cryptocurrencies. In the coming year, the regulatory developments surrounding cryptocurrencies and the market response to related investment products will be focal points worthy of close attention.
References: cointelegraph, beincrypto