Approval of new spot cryptocurrency ETFs could force the U.S. Securities and Exchange Commission (SEC) to move into a regulatory era, according to Bitwise CEO Matt Hougan.
With ETF applications increasing for digital assets like Dogecoin (DOGE), XRP, Solana (SOL), and Litecoin (LTC), industry experts believe that the SEC’s next move could shape the future of crypto investment products.
Under the Trump administration’s evolving approach to digital asset regulation, asset managers have rushed to file ETFs for a variety of cryptocurrencies. Recent filings include Tuttle Capital’s Solana-based Bonk (BONK) and even leveraged ETFs for the US First Lady’s token MELANIA.
While memecoin ETFs may struggle to get approved, Hougan believes that ETFs for more established digital assets like XRP and Solana could have a real shot if the SEC changes its stance.
Hougan explained that the SEC has historically only approved commodity-based ETFs with regulated futures markets, such as Bitcoin and Ethereum. No other cryptocurrency currently has a CFTC-regulated futures market, which poses a major obstacle to ETF approval.
But if the SEC goes beyond that precedent, it could set the stage for new ETF approvals: “If we get past that period, then the doors open. We don’t know how open they are, but I’m betting it’s not just a crack.”
Hougan pointed to Germany and Switzerland, where regulators have approved crypto ETFs beyond Bitcoin and Ethereum without requiring a regulated futures market. If the U.S. follows suit, it could trigger a significant market expansion for digital asset investment products.
While speculative ETF applications like MELANIA are unlikely to pass, Hougan believes crypto assets that are closer to commodities have a strong chance. If the SEC loosens its stance, new investment products could make XRP, Solana, and Dogecoin more accessible to traditional investors through ETFs.
*This is not investment advice.
