Asset Managers Rush to Launch Crypto ETFs Amid New SEC Rules
Asset managers are racing to introduce cryptocurrency exchange-traded funds (ETFs), taking advantage of heightened interest in digital assets and looser regulatory standards that make it easier to bring products to market.
The U.S. Securities and Exchange Commission (SEC) announced updated ETF listing requirements last week, paving the way for a surge of exchange-traded products tied to coins ranging from Solana to Dogecoin. ETFs for more established cryptocurrencies like Bitcoin and Ethereum had already launched in 2024 under older, stricter guidelines for issuers and exchanges.
At present, there are 21 U.S. ETFs that hold Bitcoin, Ethereum, or a mix of both, and dozens more filings awaiting SEC approval for funds tied to other cryptocurrencies. Analysts expect the first ETFs approved under the new standards — likely products linked to Solana and XRP — to debut in early October.
A Wave of New Filings
“We’ve got about a dozen filings with the SEC now, and more coming,” said Steven McClurg, founder of Canary Capital Group, which specializes in designing and launching ETFs. “We’re all getting ready for a wave of launches,” according to Reuters.
Since the SEC proposed the new listing standards in July, asset managers have scrambled to amend their filings and respond to regulator questions. Sources familiar with the process said a final wave of amendments could be submitted by the end of this week.
“Those filings are pretty far along in the review process,” noted Teddy Fusaro, president of Bitwise, a leading crypto asset manager. “These are the rules we had been anticipating.”
Faster Path to Market
The SEC’s vote to adopt new standards eliminates case-by-case reviews for each crypto ETF application. Instead, issuers that meet pre-set criteria can launch products more quickly — slashing approval times from as long as 270 days down to 75 days or less, according to industry sources.
That acceleration sets the stage for a boom in crypto ETFs during Q4 2025, said Jonathan Groth, partner at DGIM Law.
Grayscale Investments has already seized the moment, launching its Grayscale CoinDesk Crypto 5 ETF (GDLC.P) less than 48 hours after the SEC allowed its conversion from a private to publicly traded fund. The ETF holds Bitcoin, Ethereum, XRP, Solana, and Cardano.
“This approval reflects Grayscale’s advocacy for public market access, regulatory clarity and product innovation,” said Peter Mintzberg, CEO of Grayscale.
The Criteria for Approval
To qualify under the new streamlined process, ETFs must meet at least one of three key requirements:
- The cryptocurrency must already trade on a regulated market, or
- It must have U.S. Commodity Futures Trading Commission (CFTC)-regulated futures that have traded for at least six months, or
- Another ETF must exist that invests at least 40% of its assets directly in that cryptocurrency, rather than in derivatives like options or swaps.
“Not all of our existing filings qualify,” Kyle DaCruz, director of digital assets product at VanEck, told Reuters. “The next step is to talk to our lawyers to see which products can move forward and how rapidly will they get onto the market.”
Investor Appetite Still Uncertain
While speed to market is accelerating, questions remain about investor demand for crypto ETFs tied to lesser-known coins.
“There will be a flood of tokens that many folks have never heard of, and instead of years as with bitcoin, there will be weeks or months to provide that education,” said DaCruz.
Whether investors embrace dozens of new funds remains to be seen, but with new rules in place, asset managers are preparing for one of the biggest waves of crypto ETF launches to date.
