What to know:
- Experts expect that most of the 90-plus crypto ETF applications currently filed with the SEC will be approved.
- Nate Geraci of NovaDius Wealth Management believes the ETF market will sort out the winners and losers based on investor demand.
- Bloomberg Intelligence analyst James Seyffart warns that while many funds may launch, closures are likely for niche altcoin ETFs.
In this article
SOLSOL$207.82◢8.86%
DOGEDOGE$0.2212◢3.93%A large number of crypto-based exchange-traded funds (ETFs) might debut on American stock markets as soon as this autumn, which could significantly alter the methods through which both institutional and individual investors engage with the digital asset world. While some view this development as a significant step towards mainstream acceptance, others are preparing for imminent losses among related businesses.
According to Nate Geraci, president of NovaDius Wealth Management, there’s a strong possibility that the SEC will start approving cryptocurrency ETF applications this fall. He anticipates that many of the over 90 applications currently pending will pass, provided they fulfill the final eligibility criteria.
Ultimately, though, said Geraci, investors — not regulators — will decide which products thrive.
One appealing characteristic of the ETF market is that it operates like a merit system, enabling investors to decide where their saved funds are allocated. The market automatically separates successful investments from unsuccessful ones, so I’m not particularly worried about an excess of cryptocurrency ETFs being available.
To Geraci, it’s clear that there’s a substantial yet often overlooked need for a wider range of inclusive investment opportunities.
As an analyst, I’m convinced that the enthusiasm for futures-based and 1940 Act-structured Solana and XRP ETFs may not fully represent the actual demand. This underestimation mirrors the situation we encountered with spot bitcoin and ether ETFs. In simpler terms, there appears to be a substantial interest in direct investment products for these crypto assets, as witnessed by the response to their futures-based counterparts.
The iShares Bitcoin Trust, overseen by BlackRock, marks a record-breaking debut among exchange-traded funds (ETFs), with approximately $85 billion in bitcoin assets now under management for investors – a testament to its success.
Originally, Ethereum ETFs had less demand compared to Bitcoin ETFs. However, a spike in interest towards Ethereum’s native token recently has caused the Ethereum ETF group to see more inflows than the Bitcoin ETFs.
Since the beginning of July, Ether Exchange-Traded Funds (ETFs) have amassed close to $10 billion, accounting for about 71% of the total inflows of $14 billion since their debut a year ago, as reported by James Seyffart, an analyst at Bloomberg Intelligence.
Geraci also predicts a significant interest in index-based cryptocurrency ETFs, describing them as an easy and direct method for investors and financial advisors to invest in the broader digital asset market. For smaller, lesser-known tokens, he acknowledges that demand will largely rely on the quality of each project’s underlying foundations.
The deeper we go in the cryptocurrency rankings by market capitalization,” he explained, “the more likely it is that demand for ETFs will be connected to the achievements of specific projects and how well their assets perform. These aspects can be challenging to predict at the moment.
According to Seyffart, there’s a strong likelihood that a wave of cryptocurrency-based products is on its way, yet he expresses doubts about which ones might prove sustainable in the long run.
Should all these proposed launches come to fruition, it’s likely that some businesses may shut down in the near future, according to Seyffart. He anticipates a good level of interest in many of these products, but he cautions that assumptions should be adjusted, particularly when it comes to altcoins.
He expressed doubt about several less popular cryptocurrencies managing to have more than five successful Exchange-Traded Funds (ETFs). If individuals measure their success based on the level of Bitcoin ETFs, they will likely be let down. On the other hand, those who anticipate all of them to fail will also find themselves disappointed.
As an analyst, I’m observing a phase in the market where various issuers are expected to flood it with numerous cryptocurrency-related exchange-traded products (ETPs), much like throwing different items at a wall to see what adheres. The aim is to discover something that resonates effectively with investors. Over the next 12 to 18 months, I anticipate we’ll witness hundreds of such launches.
Analysts concur on this key idea: Exchange-Traded Funds (ETFs) foster a cutthroat market where the level of investor interest ultimately decides winners and losers. Even though SEC approval can unlock opportunities, it’s the flow of assets that will decide who survives in the long run.
In the realm of Exchange-Traded Funds (ETFs), closing products is simply part of the game, rather than an issue. Similar to the stock market, when demand dwindles or performance falters, funds may cease operations. This means that not every fresh crypto ETF, even if tied to a well-known blockchain project, could be a wise investment for investors, as it might not yield the expected results.
A potential scenario is that an Exchange-Traded Fund (ETF) linked to Solana could draw investors if the underlying token maintains its appeal among developers and users. However, if there are five distinct ETFs based on the same coin, experts like Seyffart and Geraci predict that the market may step in to prevent potential overexposure or manipulation.
“If demand doesn’t show up, those products will close,” Seyffart said.
As an analyst, I can affirm that the surge in the cryptocurrency market can be attributed to a broader institutional acceptance of digital assets. The turning point came with the SEC’s approval of spot bitcoin and ether ETFs last year, which paved the way for asset managers to launch new products. These include offerings tied to Solana, XRP, dogecoin, and various other coins, as well as basket funds that track multiple digital currencies.
This development represents a significant shift, offering traditional investors a regulated entry point into the crypto market without the need for managing complex wallets or private keys. In essence, these products democratize access to the cryptocurrency realm, making it more appealing and less daunting for mainstream investors.
But with that access comes the responsibility to be discerning.
Ultimately, it’s up to the investors to determine which products hold value and which do not, according to Geraci. This is a principle that has been fundamental in the ETF market throughout its existence.
Given the imminent arrival of numerous cryptocurrency investment funds, your timing on making a choice might be rather expedient.
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2025-08-30 18:01