Just a few days prior to Gary Gensler’s departure as Chairman on January 20th, an influx of cryptocurrency exchange-traded fund (ETF) applications flooded the Securities and Exchange Commission (SEC).
On January 17th, at least four proposals have been put forward within the cryptocurrency sector, as it braces for potential regulatory changes under the upcoming Trump administration, which is likely to take a more favorable approach towards cryptocurrencies.
ProShares, who is recognized for introducing the first Bitcoin-backed ETF, has recently filed an application for a Solana Futures ETF. This type of ETF aims to give investors an opportunity to follow Solana’s native cryptocurrency price fluctuations, SOL (SOL), indirectly by using futures contracts instead of owning the asset directly.
James Seyffart, an analyst for ETFs, shared that he finds it intriguing because there aren’t Contracts for Difference (CME) for CME yet, and he questions if the Coinbase SOL futures are substantial enough in terms of volume and liquidity.
Volatility Shares, another asset manager, had filed a similar application in December.
According to Seyffart, it’s possible that the launch of Solana ETFs within the U.S. might not occur until 2026, even if there is a pro-crypto administration in power.
CoinShares, Proshares among others, to file for an ETF
17th January saw CoinShares (previously known as Valkyrie Funds), a digital asset management company, submit an application for the “CoinShares Digital Asset ETF.” This ETF aims to mirror the performance of its exclusive Compass Crypto Market Index.
At the same time, ProShares has filed applications for ETFs that are leveraged, inverse, and futures-based, all linked to XRP. Similarly, investment companies such as Bitwise, Canary Capital, 21Shares, and WisdomTree have already presented their proposals for spot XRP ETFs.
Tidal DeFi, a company specializing in decentralized finance, has submitted an application for its Oasis Capital Digital Asset Debt Strategy ETF (DADS). This fund intends to allocate investments towards debt securities linked with businesses within the cryptocurrency infrastructure, encompassing mining operations, utility services, energy providers, and digital payment platforms.
This past week, I, as an analyst, noted that VanEck, on the 15th of January, filed an application with the SEC for an ETF named “Onchain Economy”. As per the submission, this fund is designed to invest in a diverse array of companies centered around cryptocurrencies. These could be software developers, mining operations, crypto exchanges, infrastructure constructors, payment facilitators, and other businesses operating within the digital currency sector.
Nate Geraci, president of The ETF Store, noted the significance of these filings.
Gensler’s exit nears
During his term starting from April 2021, Gensler was involved in notable legal actions against Coinbase and Binance, along with intensifying enforcement against unregistered securities deals. He will be leaving office on January 20th.
Eric Balchunas, a senior ETF analyst, commented on the burst of filings:
“Gensler wasn’t even out of the building for five minutes, and the ETF industry unloaded a massive crypto filing frenzy. Half a dozen so far”
This week, it was announced that Amanda Fischer, the Chief of Staff at the Securities and Exchange Commission, will be resigning. Additionally, it’s been reported that Daniel Werfel, currently serving at the Internal Revenue Service, plans to step down on Inauguration Day for the incoming administration.
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2025-01-18 11:23