Crypto ETF Filings Double After Gensler Resigns
The resignation of Gary Gensler as SEC Chair has sparked a wave of new ETF applications, with reports indicating the number of filings has doubled. According to Bloomberg analyst Eric Balchunas, 33 ETFs tied to digital assets are now awaiting approval.
“The list doubled since Gensler left the building on Friday. Won’t be surprised if it hits 50 within a week or two,”
Balchunas shared on X.
These applications are not limited to Bitcoin and Ethereum. Asset managers have also submitted proposals for ETFs focused on Solana, Litecoin, Dogecoin, and even a fund linked to a Trump-themed memecoin.
Balchunas predicts the majority of investment interest will remain with spot Bitcoin ETFs, noting their dominance over niche products.
“Gold dominates, silver does okay, but fringe commodities like palladium or wheat barely make a dent. I see something similar happening here,”
he explained.
The rush in filings coincides with former President Trump’s inauguration and the appointment of Mark Uyeda as the new SEC Commissioner, fueling optimism about regulatory changes.
REX Shares Targets Memecoins with New ETFs
REX Shares, an investment firm, has submitted filings for several ETFs, including ones based on Dogecoin, Bonk, and the newly launched Trump memecoin.
The Trump ETF, a standout proposal, plans to allocate 80% of its assets to the Trump memecoin, providing investors direct exposure. Additionally, it will include other digital assets and non-US ETFs in its portfolio.
However, skepticism remains about the potential demand for these niche products. According to JPMorgan analyst Kenneth Worthington, the market for smaller tokens may struggle to attract substantial investor interest.
“We don’t see a next wave of cryptocurrency (exchange-traded product) launches as being meaningful for the broader ecosystem due to the smaller market capitalization of alternative tokens,”
Worthington noted in a recent report.
While niche ETFs face uncertainty, spot Bitcoin ETFs continue to outperform. BlackRock’s iShares Bitcoin Trust was a standout last year, marking what many called “The greatest launch in ETF history.”
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
