The U.S. Securities and Exchange Commission (SEC) has initiated a review of 72 different ETF applications in the cryptocurrency sector. This move has heightened expectations among market participants for a wider variety of new products. Analysts suggest that the ongoing process may also alter the balance of power within the market.
Scope of Applications and Notable Altcoins
The ETF applications encompass a broad range of assets. In addition to significant projects like Solana $153 , XRP, and Litecoin, assets such as BNB , Cardano $0.719166 , Avalanche , Polkadot, Dogecoin $0.013993 , Aptos, and Chainlink $15 are also included. Interestingly, some proposals feature ETFs based on meme coins like Pudgy Penguins, Bonk, and others.
While some applications target specific assets, others aim to create digital asset baskets to spread risk and enhance diversity. This reflects the desire of market players to seek a more extensive product portfolio beyond traditional investment vehicles.
In these ETF structures, altcoins are gaining recognition alongside cornerstone assets like Bitcoin $93,993 and Ethereum $1,778 . However, experts believe the impact of these products may still remain limited for the time being.
Market Insights and Expectations
James Seyffart from Bloomberg Intelligence mentions that the ETF applications submitted to the SEC are being reviewed comprehensively. Despite the volume of these applications indicating substantial demand in the cryptocurrency market , he notes that investor interest is still largely concentrated around Bitcoin.
Senior analyst Eric Balchunas provides a clearer picture, stating that “Bitcoin ETFs account for 90% of global crypto fund assets.” Currently, altcoins play a smaller role in this landscape. While expectations are high, the market’s direction remains largely Bitcoin-centric.
Such observations reveal that investor preferences, driven by risk appetite and trust, continue to revolve around the largest cryptocurrency. However, this does not imply a lack of interest in alternative projects; rather, there is a cautious strategy to diversify offerings.
Historically, the SEC’s approval of a spot Bitcoin ETF led to billions of dollars flooding into the market. Subsequently, Ethereum-based ETFs were allowed to trade, marking a new chapter in the cryptocurrency sector. Now, with 72 applications under review, the pressure on the regulatory body is more evident than ever.
The effects of past approvals have been significant. Therefore, investors are keenly awaiting to see if the SEC’s current stance will create a similar impact. The new applications not only represent investment products but also provide insights into the industry’s potential future.
How the SEC approaches these applications could dictate short-term market fluctuations and shape institutional investors’ strategies in the long run. The focus is now firmly on this decision-making process.
