By Michael Scott
The US Securities and Exchange Commission (SEC) has received record applications for ETF issuers anticipating more leniency after Gesler’s exit.
Bloomberg’s Eric Balchunas reports an uptick in the crypto exchange-traded fund (ETF) bids to the SEC. The senior ETF analyst revealed in a Tuesday, Jan. 21 X post that the securities watchdog is reviewing 33 applications. The ETF bids hit double figures since Gensler’s exit from the Commission.
Balchunas responded to fellow ETF analyst James Seyffart, who listed 33 ETF applications, including Grayscale, 21Shares, ProShares, Franklin Templeton, and Bitwise. The list features multiple assets where Grayscale has two bids, including Solana (SOL) and combo with many assets. A combined Bitcoin (BTC) and Ether (ETH) feature in applications by Franklin and Hashdex. Also on the list are XRP applications filed by 21Shares and Canary Capital.
Seyffart captures applications by Canary to the SEC for XRP and Litecoin (LTC) ETF, while ProShares seeks approval for SOL and XRP futures. ETF applications for several meme coins, including TRUMP, DOGE, and BONK, are the latest addition to the list. It is worth mentioning that the submissions are yet to edge closer to their deadlines.
Balchunas weighs into the applications, indicating that Bitcoin ETFs will ultimately dominate the crypto ETFs. In a subsequent X post, he reveals that the bulk of the funds will remain tied to the spot Bitcoin ETFs despite the approval of the pending applications.
Balchunas indicates the crypto ETF space will mirror the commodity market where gold retains dominance despite silver and fringe stuff, mainly farm produce.
Balchunas submits that despite attempts to propel nickel and aluminium, the commodity market has picked winners and losers. A similar scenario in crypto ETFs will ultimately play out.
Balchunas opines that ETH would ultimately fit the silver description. Nonetheless, he rates Solana and XRP as becoming fierce competitors in a year or two.
Wave of New ETF Applications
ETF Store head Nate Geraci indicated earlier this month that the extreme leniency from SEC could lead to Dogecoin ETF approval. Such a prediction is possible if Tesla’s chief executive, Elon Musk, offers vocal support for the course.
Scrutiny into the US crypto ETFS reveals heightened activity following Ospreys Funds and REXShares recent applications. The move emerges 48 hours after Donald Trump’s swearing-in for the second term.
Although the specific details of each application may change, the issuers propose to invest at least 80% of the crypto assets. Such would aid in acquiring direct holdings, swap agreements and futures contracts.
REX-Osprey filed bids for multiple ETFs for meme coins, including DOGE, BONK, and TRUMP. Other applications by the firm include Bitcoin, Solana, XRP, and ETH.
The news of the filings triggered a 15% surge in BONK in the intraday gain, while DOGE rallied 6% within this timeframe. The news of the meme coin triggered a sizeable 5% gain in the sector’s market value to $121 billion.
San Fransisco-headquartered Bitwise Asset Management confirmed filing for the Dogecoin ETF in Delaware. The firm’s chief investment executive hailed the move as iconic for Dogecoin’s journey from a meme coin to a worthwhile financial asset.
Dogecoin Maturity to Investment Asset
The filing by Bitwise earned praise amid speculation that Dogecoin would receive an ETF approval. This achievement for the seventh-largest crypto by market value would crown the input of software specialists Billy Markus and Jackson Palmer, who established it as a lighthearted joke in 2013. The meme coin has recently gained massive traction to surge 350% in 2024.
Bitwise joins other crypto enthusiasts in acknowledging the potential of DOGE ETFs. Its achievement under the Trump administration would dissipate energy across the crypto energy. Such has occurred following the appointment of pro-crypto Mark Uyeda to serve in an acting capacity at SEC till Paul Atkin takes over. The new chair has established a crypto council to spearhead a pro-crypto agenda, provide regulatory clarity, and collaborate with lawmakers.