SEC reviewing 72 crypto-related ETF applications, including derivatives as of April 21

The US Securities and Exchange Commission (SEC) is currently reviewing 72 crypto-related exchange-traded fund (ETF) filings, according to data shared by Bloomberg senior ETF analyst Eric Balchunas on April 21.

The filings cover assets ranging from XRP, Litecoin (LTC), and Solana (SOL) to memecoins like Dogecoin (DOGE) and themed funds linked to internet culture, such as Pudgy Penguins.

Distribution potential

The filings, detailed in a table compiled by Bloomberg ETF analyst James Seyffart, reflect a broad industry effort to bring a wide range of digital assets to the US ETF market. 

Some proposals include spot ETFs for Solana, Dogecoin, and XRP, and leveraged and inverse products tied to Solana and XRP derivatives. 

Additionally, issuers are seeking approval to offer options trading on newly launched or proposed crypto ETFs, particularly those linked to Ethereum (ETH) and Bitcoin (BTC).

Balchunas also compared the effect of ETF approval to a band gaining access to major music streaming services. 

He said:

“Having your coin get ETF-ized is like being in a band and getting your songs added to all the music streaming services. Doesn’t guarantee listens but it puts your music where the vast majority of the listeners are.”

The filings cover a wide array of strategies beyond traditional spot ETFs. 

Several issuers, including ProShares and Tuttle Capital, have proposed leveraged, inverse, and thematic products targeting speculative traders and those seeking tailored exposure to crypto price movements.

Bitcoin’s dominance expected to persist

While the influx of altcoin and memecoin-related funds may broaden the crypto ETF landscape, the projection is that Bitcoin will maintain its dominance within the segment. 

According to Balchunas, Bitcoin ETFs account for approximately 90% of global crypto fund assets. Even if many new products reach the market, Bitcoin is expected to retain a commanding share, likely between 80% and 85% over the long term.

The observation reflects Bitcoin’s entrenched position as the primary institutional entry point into the crypto market. The pending approvals could create a more diverse, yet still Bitcoin-centered, ETF market. 

The SEC’s upcoming decisions, many of which have deadlines extending into mid-2025, will shape how broadly traditional finance markets integrate crypto exposure.

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