Crypto ETF Boom: Regulators Warm Up to Digital Assets

Crypto ETF updates signal regulatory evolution

The crypto market has witnessed a surge in ETF proposals and developments in recent weeks, with the latest updates indicating a shift in regulatory attitudes towards digital assets. The launch of US crypto index ETFs, such as Franklin Templeton's EZPZ ETF and Hashdex Nasdaq Crypto Index US ETF, has provided investors with convenient exposure to multiple crypto assets simultaneously.

Hashdex, the issuer of the Nasdaq Crypto Index US ETF, has filed a 19b-4 application to add seven more digital assets to its fund, including SOL, XRP, ADA, LINK, AVAX, LTC, and UNI. Samir Kerbage, CIO of Hashdex, expects both retail and professional investors to seek diversification in crypto assets, similar to traditional asset classes.

The US Securities and Exchange Commission (SEC) has continued to acknowledge various proposed single-asset ETFs, signaling that it is actively considering them. Industry experts believe that a litecoin ETF could be the next to receive approval from the SEC.

Meanwhile, Defiance ETFs has proposed the "MAGA Seven" ETF, which aims to bundle stocks expected to benefit from former President Trump's policies. The firm has not yet specified which companies will be included in the ETF.

Existing bitcoin and ether ETFs have also been subject to modifications. Grayscale and 21Shares have filed applications to enable staking for their ether ETFs, while Nasdaq and Cboe have submitted proposals to allow in-kind creations and redemptions for BlackRock's and VanEck's bitcoin ETFs, respectively.

These developments suggest that regulators are becoming more open to the idea of crypto ETFs, potentially paving the way for increased institutional investment in the digital asset market. As the crypto industry continues to evolve, investors and issuers alike are eager to explore new opportunities and products that cater to their needs.