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Crypto Firms Await SEC Response on 72 ETF Applications

Coin WorldWednesday, Apr 23, 2025 8:07 pm ET

2min read

Crypto firms are currently awaiting responses from the U.S. Securities and Exchange Commission (SEC) on 72 active applications for new crypto-related exchange-traded funds (ETFs).

These applications cover a broad spectrum of digital assets, including prominent cryptocurrencies such as Solana (SOL), XRP (XRP), Litecoin (LTC), and Dogecoin (DOGE). Additionally, the list includes other notable tokens like Sui (SUI), Axelar (AXL), Hedera (HBAR), BNB, Cardano (ADA), and Avalanche (AVAX). The applications also feature more niche and meme-based coins, such as Penguin Coin and 2x Melania.

The diversity of the cryptocurrencies included in these ETF applications reflects the broad spectrum of the digital asset market. From established coins like Bitcoin and Ethereum to newer and more niche tokens, the range of assets covered by these ETFs indicates a growing demand for investment opportunities in the cryptocurrency space. The approval of these ETFs could provide investors with more options to diversify their portfolios and gain exposure to different segments of the market.

The potential approval of these ETFs could also have significant implications for the broader financial landscape. As more investors gain access to cryptocurrencies through ETFs, the demand for these digital assets could increase, potentially driving up their prices. This could lead to greater liquidity and stability in the market, making it more attractive to institutional investors and traditional financial institutions.

However, the approval process for these ETFs is not without its challenges. The SEC has been cautious in its approach to cryptocurrency regulation, citing concerns about market manipulation, investor protection, and the potential for fraud. As a result, the approval of these ETFs may be subject to stringent conditions and requirements, ensuring that they meet the necessary regulatory standards.

According to an ETF analyst, Bitcoin ETFs will remain dominant regardless of the number of altcoin funds that are approved. “No Second Best? Bitcoin ETFs command 90% of all the crypto fund assets globally. While a TON of alt/meme coin ETFs are likely going to hit market this year, they will only make a minor dent, Bitcoin likely to retain at least 80-85% share long-term.”

The SEC greenlit the first spot market Bitcoin ETFs in January 2024, bringing in billions of dollars worth of inflows to the top digital asset by market cap, and the regulator subsequently approved Ethereum ETFs for trading last July. The approval of these ETFs could lead to increased mainstream adoption and accessibility of various cryptocurrencies, providing investors with more options to diversify their portfolios and gain exposure to different segments of the market. However, the approval process is rigorous and thorough, ensuring that only compliant and secure ETFs are listed. The potential implications of these ETFs for the broader financial landscape are significant, and their approval could lead to greater liquidity and stability in the market.

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