Crypto ETF Frenzy as Gensler's SEC Era Closes
A surge in cryptocurrency exchange-traded fund (ETF) proposals flooded the U.S. Securities and Exchange Commission (SEC) in the days leading up to Gary Gensler’s final day as chair on January 20.
On January 17, at least four ETF applications were submitted, signaling the crypto industry’s anticipation of a potential shift in regulatory attitude under President-elect Donald Trump’s administration, which many expect to be more crypto-friendly.
Notable among these filings, ProShares—a leader in crypto-linked ETFs—submitted a proposal for a Solana (SOL) Futures ETF. This product would give investors exposure to Solana’s price movements through futures contracts rather than direct ownership.
Volatility Shares, which filed a similar application in December, adds to the growing interest in Solana-focused ETFs. However, Seyffart cautioned that such ETFs may not launch until 2026, even with a favorable administration.
On the same day, CoinShares filed for its “CoinShares Digital Asset ETF,” designed to track its proprietary Compass Crypto Market Index, while ProShares also applied for leveraged and inverse futures ETFs tied to XRP. Other firms like Bitwise, 21Shares, and WisdomTree have already filed proposals for spot XRP ETFs. Meanwhile, Tidal DeFi submitted its application for the Oasis Capital Digital Asset Debt Strategy ETF, which would invest in debt instruments from crypto-related firms, including miners and energy companies.
Earlier in the week, VanEck applied for its “Onchain Economy” ETF, aiming to back crypto-focused businesses like software developers, payment providers, and exchanges.
The flood of filings underscores the significance of Gensler’s departure, which follows a tenure marked by aggressive enforcement actions against major crypto firms such as Coinbase and Binance. Nate Geraci, president of The ETF Store, emphasized the pivotal moment for the ETF industry, while senior ETF analyst Eric Balchunas quipped, “Gensler wasn’t even out of the building for five minutes, and the ETF industry unloaded a massive crypto filing frenzy.”
Gensler’s departure coincides with other high-profile resignations, including SEC Chief of Staff Amanda Fischer and IRS Commissioner Daniel Werfel, both set to step down around Trump’s inauguration day.
As the SEC faces a leadership transition, the ETF industry appears poised to leverage the evolving regulatory landscape for cryptocurrency innovation.