The machine is in motion. No less than 92 financial products linked to cryptocurrencies (ETP and ETF) are currently awaiting approval from the U.S. SEC. This unprecedented number reflects the institutional appetite for digital assets. Solana and XRP are the stars: eight ETFs for the former, seven for the latter. Two altcoins already weighing heavily in investors’ portfolios, and soon to become accessible through regulated products in the United States.
Since April, the number of filings has increased from 72 to 92, with Grayscale and 21Shares pushing innovative products such as ETFs based on ETH staking, supported by a recent clarity from the SEC.
BlackRock already dominates the market with its Bitcoin and Ethereum ETFs, capturing over $71 billion, with revenues even surpassing its S&P 500 ETF, while currently refusing to launch a product on altcoins.
Crypto: a record queue at the SEC for ETFs
In April, Bloomberg reported 72 official requests. Four months later, the count rose to 92. A staggering increase confirming the market’s organization. Among these filings are three ETFs directly linked to Bitcoin and Ethereum, but the vast majority target altcoins. Grayscale, for example, aims to convert five of its existing funds into ETFs, with exposure to Litecoin, Solana, Dogecoin, XRP, and Avalanche. Meanwhile, 21Shares and Grayscale are also pushing the idea of ETH staking-based ETFs, a major innovation as the SEC has clarified that some liquid staking activities are beyond its control.
Signal awaited for altcoins?
Analysts agree: the arrival of a wave of altcoin ETFs could trigger a new bull cycle. At Bitfinex, it is believed that as long as these products are not validated, altcoins will lag behind Bitcoin and Ethereum. As Nate Geraci, president of NovaDius Wealth Management, puts it:
Look at all these crypto ETF applications… That’s what I mean by the imminent opening of the floodgates.
BlackRock crushes competition, without altcoin
Behind this flood of filings stands out one player: BlackRock. Its iShares Bitcoin Trust ETF (IBIT) has attracted over $58.2 billion since its launch. Its iShares Ethereum Trust ETF (ETHA) records $13.1 billion in net inflows. Result: IBIT now holds more than 3% of the total Bitcoin supply. Even more remarkable: the revenues generated by IBIT exceed those of BlackRock’s flagship S&P 500 ETF (IVV). With a fee ratio of 0.25% compared to 0.03% for IVV, the crypto product currently yields more than the historical fund. Yet, the global leader remains closed to the idea of a crypto ETF other than Bitcoin or Ethereum.
A new era for investors
The equation is simple: dozens of new ETFs ready to flood the market, BlackRock already established as a leader, and altcoins waiting for their turn to shine. If the SEC approves even a portion of these 92 filings, the industry could experience massive democratization. Traditional investors would finally have simple and regulated access to a much broader spectrum than just BTC-ETH duo. The next step? To see if the regulator will choose to open the floodgates at once and if investors will follow…
