- SEC will review over 70 crypto ETF proposals under Paul Atkins leadership in 2025.
- Token classification issues may delay ETF approvals for XRP and Solana.
- Bitcoin ETFs close to 104 billion while altcoin ETFs may attract up to 1 billion.
The U.S. Securities and Exchange Commission (SEC) is preparing to review a record number of cryptocurrency exchange-traded fund (ETF) applications in 2025. There are around 70 proposals on the table, including cryptocurrencies, meme coins, indexes, and derivative products.
The long review period will take place under the leadership of new SEC Chair Paul Atkins, pointing to a major phase in the changing relationship between crypto assets and traditional financial products. ETF analyst Eric Balchunas confirmed the scope of the proposals, calling the list one of the most comprehensive to date. Assets under review range from major tokens like XRP, Solana, and Litecoin to meme-based cryptocurrencies such as Dogecoin and Penguins.
The filings also include leveraged and derivative-linked products, including a 2x Melania-themed token, pointing to an increasingly experimental approach by asset managers looking to capture crypto exposure in new formats.
Regulatory Direction Under Paul Atkins
The upcoming reviews mark the beginning of a new chapter at the SEC. Paul Atkins, who was sworn in as the Commission’s chair, previously served during a period of deregulatory efforts. His return, however, coincides with heightened scrutiny of digital assets and growing institutional interest in regulated crypto investment vehicles.
Atkins now faces critical decisions regarding the classification of cryptocurrencies. Many of the tokens named in ETF proposals are still under legal and regulatory examination, particularly around whether they qualify as securities under U.S. law. XRP and Solana, for instance, have been involved in legal proceedings and regulatory discussions that could influence their eligibility for inclusion in ETFs.
How the SEC addresses these classification issues will determine which filings advance and which face delays or rejection. The Commission’s decisions are expected to set important precedents for how digital assets can be structured in retail and institutional investment products.
Market Momentum and Bitcoin ETF Growth
The wave of crypto ETF applications builds on the momentum of spot Bitcoin ETF approvals in early 2024. This method attracted institutional attention and helped establish Bitcoin as a viable ETF asset class. According to Bloomberg Intelligence, U.S. Bitcoin ETFs surpassed $100 billion in net assets by November 21, 2024.
Morningstar’s Bryan Armour added that the Month has been one of improvements due to the positivity of the market after Trump’s comeback. During the period, approximately $5 billion was invested in Bitcoin ETFs, increasing the total assets to an incredible $ 104 billion. These ETFs are 97% toward achieving the total market value attributed to Satoshi Nakamoto, the creator of Bitcoin, and 82% toward outcompeting the gold ETFs, which hold about $120 billion in value.
Altcoins and Derivatives in Focus
Consequently, several altcoin ETFs are emerging while Bitcoin’s popularity continues to reign. In an interview, Katalin Tischhauser, the head of research at Sygnum Bank, stated that the altcoins ETF could attract inflows ranging from several hundred million dollars to up to $1 billion. She also noted that while derivatives and options might provide exposure to investment vehicles such as Bitcoin or Ethereum, structured products are further from getting broad adoption in institutions.
Recent developments also show the evolution of the acceptance of tokens in the ETF format. On April 21, ARK Invest incorporated Solana into two of its funds, implying that it was the first time investors with a U.S. address could directly invest in SOL through an ETF.
