Crypto ETF Applications Flood SEC as Gary Gensler Confirms 2025 Exit

Key Takeaways

• U.S. spot Bitcoin ETFs command over $104 billion in BTC.
• A majority of altcoin ETF applications were filed in October and November, just ahead and after the U.S. Presidential election.
• Gary Gensler will step down as Chairman of the SEC on Jan. 20, 2025, days before several ETF application deadlines.

Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) wouldn’t be possible without Gary Gensler, ironically.

However, now that he is confirmed to be stepping down as chairman of the U.S. Securities and Exchange Commission (SEC), it seems that even bigger crypto ETF breakthroughs are on the horizon.

Crypto ETF Applications Pour In

After Ethereum ETFs were greenlit, altcoin ETFs gained traction. A flurry of applications for spot crypto ETFs poured in, with several major providers taking notice.

Bitwise and VanEck, major BTC and ETH ETF providers, recently filed for spot Solana (SOL) ETFs.

Litecoin (LTC) ETFs also received some love, with multiple applications submitted in November.

Ripple , despite its still ongoing legal tussle with the SEC, has also caught the attention of ETF providers, with 21Shares, Canary Capital, and several others filing applications for spot XRP ETFs with the SEC.

What is interesting is that the majority of these filings were made in September and October, just ahead of the U.S. Presidential Election.

Seemingly, asset managers and firms were banking on a pro-crypto shift following the results.

Crypto Combos

In addition to altcoin ETFs, another investment trend is gaining momentum: combo ETFs, otherwise referred to as a “One+One” in the investment world.

These products offer 100% notional exposure to two different assets by leveraging futures contracts.

Several filings have been made with the SEC, proposing a range of combinations.

Volatility Shares Trust, for example, has filed several applications to combine the Nasdaq 100 Index with Bitcoin or Ethereum.

The company has also proposed pairing the S&P with BTC or ETH , as well as offering a straightforward Bitcoin-Ethereum combo.

Bitwise has filed to convert its $1.3 billion crypto index fund into an exchange-traded product (ETP).

Grayscale has also expressed interest in the ‘basket’ style fund and has applied to convert its Digital Large Cap Fund, which commands over $760 million in assets, into an ETF.

The Year Ahead

Interestingly, the SEC has deadlines to meet in responding to these applications, and most of them fall in the final week of January 2025, or at least a week after Gary Gensler officially steps down from the SEC on Jan. 20.

It could be that these applications are long shots from asset managers who may have been betting on Gensler being out of a job, regardless of which party won the U.S. election.

Or it could be that some were waiting for the elections to confidently make their bid.

The timing couldn’t be more perfect. That said, there are at least three more deadline stages after that, which could extend many applications into August 2025.