SEC Reviews 72 Crypto ETF Proposals as Bitcoin Dominates 90% of Market

As the regulatory environment in the US becomes more favorable towards cryptocurrencies, the Securities and Exchange Commission (SEC) is currently reviewing 72 proposals for new crypto ETFs. This surge in applications comes after the successful launch of Bitcoin ETFs, which have significantly impacted the global digital assets market. Despite the growing interest in altcoin-based products, Bitcoin ETFs continue to dominate the market, holding 90% of global crypto fund assets.

Bitcoin ETFs have shown remarkable success, with total net assets reaching $94.5 billion in the US. This achievement has paved the way for a new market for crypto-related assets, prompting issuers to submit numerous applications to the SEC. The current proposals include a wide range of cryptocurrencies, from established coins like XRP, Litecoin, and Solana to more niche tokens. However, only 23 of these proposals focus on altcoins other than Solana, XRP, or Litecoin, with many others concerning new derivatives on existing ETFs.

While the approval of new altcoin ETFs could attract fresh liquidity and interest in these tokens, as seen with Ethereum ETF options, it is unlikely that any crypto fund will replicate Bitcoin’s success in the ETF market. Bitcoin’s widespread recognition as a ‘store of value’ and its significant head start make it difficult for newcomers to disrupt its 90% market share. Some analysts claim that these new products, taken together, couldn’t displace more than 5-10% of Bitcoin’s ETF market dominance. However, these altcoin ETFs are not a futile endeavor, as they have continually created new inflows and interest in their underlying assets, especially with issuers acquiring token stockpiles.

Despite the potential for new altcoin ETFs to drive bullish cycles for the altcoin market, Bitcoin is expected to maintain its dominance in the ETF market. The approval of XRP and Solana ETFs, for instance, could stimulate new bullish cycles for the altcoin market. However, given Bitcoin’s established position, it will likely continue to command a large share of the ETF market. The success of Bitcoin ETFs has opened a new market for crypto-related assets, and issuers are eager to capitalize on this opportunity. However, the dominance of Bitcoin in the institutional market remains unchanged, and it is difficult to imagine any newcomer disrupting its position.