Crypto ETF Frenzy Kicks Off With XRP, Solana After Gensler’s SEC Exit

• Several cryptocurrency ETF filings were submitted to the SEC before Gary Gensler stepped down as Chair on January 20.

• ProShares, VanEck, and other firms proposed funds targeting Solana, XRP, Litecoin, and broader crypto markets.

As Gary Gensler steps down from the SEC, the ETF industry has responded swiftly with a series of new crypto ETF filings. In the past 48 hours, firms have submitted a range of ETF proposals, including XRP Futures ETFs, Solana Futures ETFs, and others targeting digital assets. 

ProShares was the first to launch Bitcoin ETFs and filed for a Solana Futures ETF on January 17. This fund is designed to give investors access to SOL, the token of the Solana network, through futures contracts, not the actual tokens. 

This is a positive because it demonstrates interest in the Solana ecosystem. However, some analysts have expressed concern as to why futures for the cryptocurrency are limited. James Seyffart, an ETF analyst, said that the lack of CME futures and the relative illiquidity of options might present difficulties for such a fund.

Volatility Shares, another asset manager, had also applied for a similar license in December. Still, Seyffart estimated that Solana ETFs based in the United States could hit the market no sooner than 2026, as reported by CNF.

NEW: ProShares just filed for a Solana Futures ETF. VolatilityShares also filed for one of these back in December. Interesting because there arent CME futures yet and i'm not sure if the Coinbase SOL futures are large and liquid enough? pic.twitter.com/7dUPIQw37z

— James Seyffart (@JSeyff) January 17, 2025

CoinShares, the former Valkyrie Funds, also filed its application for the “CoinShares Digital Asset ETF.” This fund will invest in the Compass Crypto Market Index, thus ensuring the investor gets exposure to the cryptocurrency market. ProShares added more applications for leveraged, inverse, and futures ETFs associated with XRP to its portfolio, indicating that investors are interested in other crypto-related investment products.

Broader ETF Applications Target Expanding Markets

This wave of filings did not end with Solana and XRP. On 15 January, VanEck applied for an ETF called the “Onchain Economy,” which will focus on companies related to cryptocurrencies, such as developers, miners, exchanges, and payment services. This fund is designed to tap into the increasing market associated with blockchain technology.

At the same time, Tidal DeFi submitted the Oasis Capital Digital Asset Debt Strategy ETF application (DADS). This fund intends to make investments in debt securities of crypto ecosystem firms including mining, energy, and payment firms. Nate Geraci, president of The ETF Store highlighted the importance of these filings saying that they represent the growth of cryptocurrency market.

Ripple and Litecoin ETFs Draw Attention

As CNF recently reported, Ripple ETFs got a new lease of life as Polymarket odds for approval rose to 70% due to the increasing price of XRP and a positive shift in the regulatory landscape. But, according to the analysts, the chances of approval before the middle of 2025 remain rather low owing to the issues with the SEC.

Litecoin could also play a significant role in the ETF industry. Recently, Nasdaq submitted a 19b-4 application to the SEC to list Canary’s Litecoin ETF. Bloomberg analyst Eric Balchunas said that he is sure that Litecoin will be approved, pointing to its commodity status and the positive feedback from the SEC concerning similar applications.

Litecoin ETF now has all the boxes checked. The first alt coin ETF of 2025 is about to be on the clock. I don't see any reason why this would be withdrawn either given SEC gave comments on the S-1, litecoin is seen as commodity and there's new SEC sheriff in town. https://t.co/DaE7jxlb9s

— Eric Balchunas (@EricBalchunas) January 16, 2025

Gensler joined the SEC in April 2021 and has already brought several enforcement actions against crypto exchanges and token issuers. His departure has led to increased ETF applications, and analysts believe that the industry expects better treatment under the new administration.