SEC Reviews 72 Crypto ETF Applications, Signaling Market Integration

The U.S. Securities and Exchange Commission (SEC) is currently reviewing a record 72 applications for crypto-related exchange-traded funds (ETFs), marking a significant push toward broader market integration of digital assets. These applications cover a wide range of digital assets and include spot ETFs, options products, and leveraged or inverse ETFs. The majority of the submissions are for XRP, Solana, and Litecoin, indicating a growing interest in these cryptocurrencies among fund issuers.

XRP leads the filings with 10 dedicated applications, highlighting its strong appeal to fund issuers. Solana follows with five filings, while Litecoin and Dogecoin each have three. These assets were selected based on their market capitalization, active user bases, and investor interest. The inclusion of Solana, known for its fast blockchain infrastructure and growing ecosystem in NFTs and DeFi, suggests that institutions are diversifying their crypto holdings beyond Bitcoin and Ethereum.

The rise in applications for crypto ETFs signals increased interest in the crypto market. While mainstream cryptocurrencies make up the majority of the filings, a number of applications indicate a shift towards assets driven by internet culture. Novel, risk-oriented products like leveraged and memecoin-themed ETFs have gained attention for their novelty and risk-driven design. These proposals show how crypto-native culture is starting to influence the design of financial products on Wall Street.

The fate of these 72 ETFs is now in the hands of the SEC, which will hand down decisions over the coming months. Despite recent approval of Bitcoin spot ETFs signaling a somewhat more lenient regulatory approach, the possibility of approval for an ETF covering a broad basket of crypto assets remains uncertain. Issuers remain hopeful, with many funds filing applications for spot exposure, options trading, and inverse strategies to provide flexibility for both institutional and retail investors.

Even with this wide range of applications, Bitcoin is expected to remain the dominant asset in the ETF market. Analysts note that 90% of all global crypto fund assets are in Bitcoin ETFs, and even with dozens of new funds being launched this year, Bitcoin’s share is likely to remain between 80% and 85%. This dominance is due to Bitcoin’s recognition as a safe portal for institutional trade, offering simplicity, stability, and regulatory familiarity.

Crypto ETFs are quickly becoming the easiest way to gain regulated crypto exposure. The approval of any of the 72 pending filings could radically expand the market, opening access to hedge funds, banks, pension funds, and individual investors through retirement institutions. This push towards broader market integration of digital assets is a significant step in the evolution of the crypto market, signaling growing institutional access and interest in the space.