At the end of 2024, the cryptocurrency industry was expected to undergo a complete transformation, especially with regard to traditional finance. With the imminent inauguration of crypto-friendly Donald Trump, the US regulatory landscape is expected to become more favorable to the industry.
Interestingly, asset managers are not waiting for power to change before taking advantage of this shift, as they sent out a series of applications for cryptocurrency-related exchange-traded funds (ETFs) this week. Below is an overview of the latest ETF applications related to digital assets.
Cryptocurrency ETFs are taking center stage
On Friday, January 17, several asset management firms filed applications for at least six cryptocurrency exchange-traded funds with the US Securities and Exchange Commission (SEC). Most notably, ProShares Asset Management has applied for leveraged and inverse XRP and Solana ETFs.
For context, an ETF is designed to maximize the performance of its underlying assets (XRP, in this case). Meanwhile, an inverse ETF provides exposure to the opposite performance of an asset.
ProShares has also filed for XRP and Solana futures exchange-traded funds with the SEC. These investment products allow investors exposure to price movements of XRP and Solana through futures contracts (agreements to buy or sell an asset at a predetermined price in the future).
According to Nate Geraci, Valkyrie has also applied for a CoinShares Digital Asset ETF, which will provide exposure to the 10 largest digital assets by market cap. Meanwhile, investment firm Tidal has filed for the Oasis Capital Digital Asset Debt Strategy ETF, which will invest in the debt of companies involved in digital asset-related activities.
Source: NateGeraci/X
This is the latest wave From ETF deposits It comes on the back of orders from Canary Capital and VanEck. On Thursday, January 16, Canary filed an amended Form S-1 for the Litecoin ETF.
Meanwhile, asset manager Van Eck also earlier filed for an “Onchain Economy” exchange-traded fund on Wednesday, January 15. According to the filing, the ETF will invest in companies across the cryptocurrency industry.
2025 taking shape?
The year 2025 was always expected to mark the beginning of a wave of new cryptocurrency-related ETFs, and it has started as expected. With SEC Chairman Gary Gensler expected to leave office on January 20, the more crypto-friendly Paul Atkins has been nominated to take over.
The former SEC commissioner who served under President George W. Bush has gained a reputation for advocating less stringent regulation of financial markets. These upcoming shifts in the regulatory landscape are expected to pave the way for greater institutional adoption in 2025.
The total crypto market cap on the daily timeframe | Source: TOTAL chart on TradingView
Featured image from Shutterstock, chart from TradingView
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