Regulators Redefine Crypto Access: ETFs Get a Makeover

A potential shift in regulatory treatment for certain cryptocurrencies could see the U.S. Securities and Exchange Commission (SEC) fast-tracking the approval of exchange-traded funds (ETFs) for projects such as Solana (SOL), XRP, and Chainlink (LINK). Recent developments suggest that the SEC is examining a new approach to streamline the regulatory pathway for crypto-related products, particularly through in-kind creation and redemption processes. This development aligns with the SEC’s broader Project Crypto initiative, launched earlier this year under Chairman Paul Atkins, aiming to modernize the agency’s approach to digital assets.

The SEC’s recent decision to permit in-kind creations and redemptions for crypto ETPs (Exchange-Traded Products) has been viewed as a critical step toward enabling smoother ETF structures for digital assets. This mechanism allows investors to contribute physical assets—such as Solana or XRP—directly into the fund, rather than relying on cash-based creation processes, which can be more complex and costly. Such a change could significantly lower the barriers for market participants seeking to launch or invest in crypto ETFs.

The regulatory environment is also showing signs of increasing collaboration between the SEC and the Commodity Futures Trading Commission (CFTC). A joint statement issued earlier in 2025 highlighted ongoing efforts to harmonize oversight of the crypto market, with a focus on minimizing overlap and ensuring consistent regulatory treatment. This cooperation could play a pivotal role in determining the eligibility of crypto assets for inclusion in ETFs, particularly for those still under regulatory scrutiny, such as XRP.

Despite these regulatory shifts, the question remains whether investors will show up in meaningful numbers. While the potential approval of these ETFs could attract institutional interest, retail adoption remains uncertain. The SEC has historically been cautious in approving crypto ETFs, citing concerns over market manipulation, volatility, and the lack of robust secondary markets for many digital assets. However, with the agency now permitting in-kind creations and conducting a series of roundtables to explore trade-through prohibitions, the regulatory climate appears to be trending toward greater acceptance.

Investor demand will ultimately depend on several factors, including the perceived legitimacy of the underlying assets, the structure of the ETFs, and broader market conditions. Chainlink, for instance, has seen increased institutional adoption in recent quarters, which may enhance its appeal in a regulated product. Solana’s high throughput and growing ecosystem could also attract interest, particularly among investors seeking exposure to more scalable blockchain infrastructures. XRP, however, remains in a regulatory gray area and may face more hurdles even with the new rules.

The SEC’s actions suggest a strategic pivot to accommodate crypto assets without fully classifying them as securities—a balancing act that could influence future product design and investor behavior. While no formal approval for Solana, XRP, or Chainlink ETFs has yet been issued, the regulatory environment is evolving in ways that could significantly impact the market structure in the near term. Market participants will be closely watching the SEC’s Project Crypto and subsequent rulemaking decisions for further clarity.