SEC Opens the Floodgates, The Next Wave of Crypto ETFs Is Coming!

Asset management companies are rushing to prepare for the launch of cryptocurrency exchange-traded funds (ETFs), hoping to capitalize on the growing popularity of digital assets while accelerating the rollout of related products amid relaxed regulatory requirements.

Last week, the U.S. Securities and Exchange Commission (SEC) released updated ETF standards, which are expected to increase demand for exchange-traded products linked to a range of cryptocurrencies, including Solana and Dogecoin. ETFs centered around more established cryptocurrencies like Bitcoin and Ethereum were launched in 2024 under previous rules, which imposed stricter criteria on issuers and exchanges. Currently, there are 21 ETFs in the U.S. that hold Bitcoin or Ethereum, or both, and dozens of new products tied to other cryptocurrencies have been filed with the SEC.

Analysts say they expect the first products approved under the new rules—likely ETFs linked to Solana and XRP—to launch as early as October. Steven McClurg, founder of digital asset management firm Canary Capital Group, which designs and launches ETFs, stated, "We've got about a dozen filings with the SEC now, and more coming."

Since the SEC first proposed the new listing standards in July, companies have been racing to update their new product filings and respond to specific comments and questions from the regulator. Three anonymous sources familiar with the matter indicated that a final wave of amendments is likely to be submitted before the weekend. Teddy Fusaro, President of crypto asset management firm Bitwise, noted, "These filings have progressed significantly in the review process. These are the regulations we've been waiting for."

Last week, the SEC voted to adopt the new listing standards, eliminating the requirement for individual regulatory review of each crypto ETF application. This change allows products that meet predetermined criteria to launch without undergoing a lengthy case-by-case approval process.

Industry insiders say this will shorten the approval timeline for new crypto products from up to 270 days to 75 days or less. Jonathan Groth, a partner at DGIM Law, suggested that the fourth quarter of 2025 is shaping up to be a boom period for crypto ETF issuers.

Grayscale Investments took the lead by launching its new Grayscale CoinDesk Crypto 5 ETF less than 48 hours after the SEC approved its conversion from a private fund to a publicly traded fund. This Grayscale ETF holds Bitcoin and Ethereum (for which spot ETFs already exist), as well as XRP, Solana, and Cardano.

Grayscale CEO Peter Mintzberg stated that the approval of the new ETF reflects the company's advocacy for "public market access, regulatory clarity, and product innovation."

To benefit from the new, faster process, an ETF must meet at least one of three key criteria. It qualifies if the underlying cryptocurrency is already traded on a regulated market, or if it has futures contracts regulated by the U.S. Commodity Futures Trading Commission (CFTC) that have been trading for at least six months. Alternatively, if another ETF linked to the same cryptocurrency exists and invests at least 40% of its assets directly in the cryptocurrency itself (rather than options or swaps), the proposed ETF may also qualify for approval.

Kyle DaCruz, Director of Digital Asset Products at VanEck, commented, "Not all of our existing filings qualify. The next step is to talk to our lawyers to see which products can move forward and how rapidly they will get onto the market." What remains unclear is the level of investor interest in dozens of crypto ETFs tied to less well-known cryptocurrencies and how these products will fit into investors' portfolios.

DaCruz added, "There will be a flood of tokens that many folks have never heard of, and instead of years as with bitcoin, there will be weeks or months to provide that education."