SEC to Review 70+ Crypto ETFs Amid Institutional Interest Surge

More than 70 cryptocurrency exchange-traded funds (ETFs) are expected to undergo review by the US Securities and Exchange Commission (SEC) this year, marking a potentially transformative moment for digital assets. The proposed products span a broad range of holdings, from large-cap altcoins like XRP, Litecoin, and Solana to meme coins like Dogecoin, and even niche derivatives products themed around pop culture and personalities like “2x Melania.” This wave of filings aligns with a surge in institutional interest in cryptocurrencies, with more than 80% of institutions intending to boost their crypto allocations in 2025.

While optimism is high, analysts caution that ETF approval alone is no guarantee of success. The listing of a crypto ETF increases visibility but doesn’t ensure widespread traction or usage. Experts warn that only a few ETFs will attract any major inflows, with derivative-based products likely to have the most institutional appeal. Altcoin ETFs may only attract several hundred million to a billion dollars in cumulative inflows, a far cry from the more than $100 billion that flowed into spot Bitcoin ETFs last year. Derivative-based products may have stronger appeal among institutions, as they unlock sophisticated strategies that could potentially trigger explosive price movements.

Companies are already working to make sure their ETF offerings stand out. ark Invest recently added exposure to staked Solana to the portfolios of two of its exchange-traded funds, the Next Generation Internet ETF (ARKW) and Fintech Innovation ETF (ARKF). This was the first time US-listed ETFs included spot sol in their holdings. The inclusion is part of ARK’s strategy to offer investors exposure to emerging technologies, combining crypto assets like Solana with stocks from companies like coinbase, Block, and Robinhood. While the SEC has not yet approved any spot Solana ETFs, the move signals growing interest in integrating Solana into institutional portfolios.

Meanwhile, United States asset manager Canary Capital recently filed for a new ETF that will hold the native token of the Tron blockchain, TRX. The proposed ETF aims to hold spot TRX while also staking a portion of the tokens to generate additional yield. This filing is part of the broader wave of submissions seeking approval for ETFs focused on alternative cryptocurrencies, also known as altcoins. However, Canary’s proposal stands out for requesting staking privileges in its initial application. Tron is a proof-of-stake blockchain that was developed by Justin Sun, who is currently engaged in legal proceedings with the SEC.

Despite the growing number of applications, some analysts remain skeptical about their potential success. Crypto researcher Alex Krüger warned that most altcoin ETFs will likely fail to attract meaningful assets under management and may ultimately become a financial burden for the issuers. For now, 2025 is shaping up to be a critical year in the integration of crypto assets into mainstream investment vehicles.

Ask Aime: What is the US Securities and Exchange Commission (SEC) considering in its review of more than 70 cryptocurrency exchange-traded funds (ETFs)?