Bitcoin News Today: Regulators Eye 92 Crypto ETFs: Altcoin Era Kicks Into Gear

The U.S. Securities and Exchange Commission (SEC) is currently reviewing a total of 92 crypto exchange-traded funds (ETFs), with applications concentrated on altcoins such as Solana (SOL) and XRP. According to data from Bloomberg Intelligence’s ETF analyst James Seyffart, Solana leads the pack with eight pending ETF applications, followed closely by XRP with seven, both significantly ahead of other altcoins [1]. This surge in applications marks a notable shift in the ETF landscape, as the focus broadens from Bitcoin and Ethereum to include more diversified crypto exposure.

The regulatory environment appears to be shifting in favor of crypto ETFs. In late July, major U.S. exchanges including CBOE BZX, NYSE Arca, and Nasdaq proposed generic listing standards for crypto-based exchange-traded products (ETPs), which, if approved, could streamline the approval process for new funds. These proposed standards would allow crypto ETFs to follow the same regulatory framework as traditional ETFs under the 1940 Act, a change that could significantly accelerate the time it takes for a fund to reach market [2].

Industry giants like Grayscale and 21Shares are among the key players in the pipeline. Grayscale is currently seeking to convert five existing trusts into ETF structures, covering altcoins like Litecoin, Solana, Dogecoin, XRP, and Avalanche. 21Shares is also making strides, having recently filed for a spot SEI ETF, with plans for similar funds in the future [1]. The SEC’s recent clarification that certain liquid staking activities fall outside its direct regulatory jurisdiction adds further clarity to the space, potentially reducing legal hurdles for firms seeking to offer staking-related products.

The potential approval of these ETFs could have significant implications for the broader crypto market. Analysts suggest that increased access through ETFs could drive capital inflows and trigger an altcoin rally, commonly referred to as an "altseason." According to Seyffart, the growing number of applications reflects heightened industry confidence and interest in altcoins beyond Bitcoin and Ethereum [1]. With final submission deadlines for many of these applications approaching in October, the coming months could serve as a critical turning point in the regulatory acceptance of crypto assets.

BlackRock, currently the dominant player in the crypto ETF space, has seen substantial inflows into its Bitcoin and Ethereum funds. The firm’s Bitcoin ETF, iShares Bitcoin Trust (IBIT), has seen over $58.28 billion in inflows since its launch, while the Ethereum Trust (ETHA) has attracted $13.12 billion. As more crypto ETFs move through the regulatory pipeline, the competitive landscape is expected to evolve, potentially reshaping the market’s structure and dynamics [3].

Source:

[1] 92 crypto ETFs now await SEC approval with Solana, XRP leading applications (https://finance.yahoo.com/news/92-crypto-etfs-now-await-130056606.html)

[2] Dogecoin ETFs—and More—Could Land Soon if the SEC... (https://www.investopedia.com/dogecoin-etfs-and-more-could-land-soon-if-the-sec-oks-new-rules-11799387)

[3] 92 crypto-related ETPs in the works: 'Floodgates to open' (https://cointelegraph.com/news/92-crypto-related-etps-are-in-the-works-with-floodgates-open-soon)