Asset Managers Prepare for Surge of Crypto ETFs in U.S. Market

Investment firms are set to introduce a wave of cryptocurrency exchange-traded funds (ETFs) in the United States, following updated approval protocols from the U.S. Securities and Exchange Commission (SEC). These new regulations, announced last week, are expected to accelerate the launch of various ETFs linked to digital assets, including popular cryptocurrencies such as solana and dogecoin.

The SEC’s decision to streamline the approval process means that products meeting specific criteria can launch without undergoing the lengthy individual review previously required. This shift reduces the approval timeline for new crypto ETFs to as little as 75 days, down from up to 270 days. Analysts anticipate that the first ETFs under these new regulations will likely debut in early October 2024, focusing on cryptocurrencies like solana and XRP.

New Opportunities for Asset Managers

Asset managers are eager to take advantage of the evolving regulatory landscape. According to Steven McClurg, founder of Canary Capital Group, a digital assets investment management firm, there are currently around a dozen filings with the SEC, with more expected soon. “We’re all getting ready for a wave of launches,” he stated, reflecting the optimism shared among industry leaders.

Since the SEC introduced proposed new listing standards in July, firms have been working diligently to amend their product filings. A final set of amendments could be submitted by the end of this week, as firms respond to the SEC’s inquiries. Teddy Fusaro, president of Bitwise, noted that the filings are progressing well through the review process, indicating a favorable outlook for upcoming launches.

The SEC’s recent vote to adopt the new standards marks a significant change in how crypto ETFs are regulated. By eliminating the need for individual reviews, the SEC has paved the way for a more efficient market entry for these products, which could lead to a substantial increase in the number of available ETFs.

Market Dynamics and Future Prospects

The fourth quarter of 2025 is anticipated to be a pivotal time for crypto ETF issuers, according to Jonathan Groth, a partner at DGIM Law. Grayscale Investments has already taken steps to capitalize on the new rules, launching its Grayscale CoinDesk Crypto 5 ETF shortly after the SEC allowed its conversion from a private to a publicly traded fund. This ETF includes holdings in bitcoin, ethereum, XRP, solana, and cardano.

To qualify for expedited approval, an ETF must meet at least one of three criteria. These include having the underlying cryptocurrency trade on a regulated market, possessing regulated futures contracts, or having another ETF with a significant investment in that cryptocurrency. This streamlined approach is expected to encourage a broader array of crypto products reaching investors more quickly.

Despite the excitement surrounding new offerings, questions remain about the demand for ETFs tied to lesser-known cryptocurrencies. Kyle DaCruz, director of digital assets product at asset manager VanEck, acknowledged that not all existing filings may meet the new criteria. He emphasized the necessity for firms to evaluate which products can be expedited to market effectively.

As the landscape for crypto ETFs evolves, industry participants express a need for education regarding the emerging tokens. “There will be a flood of tokens that many folks have never heard of,” DaCruz said. The rapid introduction of these products will challenge both managers and investors to familiarize themselves with the new opportunities in the crypto space.

In summary, the SEC’s revised standards are set to transform the U.S. cryptocurrency ETF market. With firms ready to launch a diverse range of products, the coming months will reveal how these changes will shape investment strategies and market dynamics in the digital asset arena.