SEC’s Management Changes Caused a Wave of ETF Applications

The appointment of SEC Commissioner Mark Uyeda, known for his pro-crypto stance, as the agency's acting chairman has triggered a surge in applications for new ETFs. Let's look atthe key details: who filed the applications, what products are being proposed, and what are the odds of approval?

Key Players and Their Proposals

VanEck: Onchain Economy ETF

On January 15, 2025, asset manager VanEck filed for an Onchain Economy ETF. This fund targets investments in crypto-focused companies, rather than tokens — ranging from mining firms to exchanges and infrastructure developers. This move aligns with VanEck’s strategy to create products that provide access to the digital economy.

Canary Capital: Litecoin ETF

Canary Capital has also stepped up its game, submitting an amended S-1 form to the SEC for its Litecoin ETF. While the initial application was filed back in October, these recent revisions highlight the firm’s persistence. Experts believe this is a strategic step toward eventual approval.

Oasis Capital: Digital Asset Debt Strategy ETF (DADS)

Tidal DeFi, the asset management arm of Oasis Capital, has proposed an ETF that will invest in debt instruments issued by crypto companies. This includes miners, energy firms, and payment platforms.

CoinShares: Digital Asset ETF

CoinShares introduced an ETF designed to track the Compass Index, covering the broader cryptocurrency market. As a leader in digital asset solutions, CoinShares is making a significant push to expand its presence in the U.S. market.

ProShares: XRP and Solana ETF

ProShares has broadened its portfolio by filing applications for ETFs linked to XRP and Solana, including leveraged, inverse, and futures products.

Which ETFs will be approved next?

Experts are calling 2025 the Year of Crypto ETFs, as many leading firms have submitted their applications for approval. Among the frontrunners, Solana stands out as a top contender for a spot ETF. VanEck has already filed for a listing on the Cboe BZX exchange.

Polymarket predicts an 89% chance of approval, making Solana one of the most promising cryptocurrencies in this segment. Analyst Eric Balchunas has also identified Solana as the next likely candidate for a spot ETF.

Litecoin is another strong contender. Canary Capital’s amended Litecoin ETF application is viewed as a positive development, with analysts, including Balchunas, highlighting its potential. Polymarket gives it a 69% chance of approval.

On the other hand, Dogecoin (DOGE) remains a long shot. Applications from Osprey Funds and REX Shares for a DOGE ETF face significant skepticism, and experts see little chance of approval anytime soon.

What to Expect After Gensler’s Exit

Gary Gensler’s tenure, which began in April 2021, was marked by aggressive repressions on crypto. This included lawsuits involving Ripple Labs, Coinbase, Binance, and cases related to unregistered securities offerings.

However, Gensler’s departure and the arrival of new leadership signal a potentially friendlier environment for the crypto industry. Market participants expect the new administration to adopt a more constructive stance toward cryptocurrencies. Insiders said the SEC may even pause certain lawsuits unrelated to fraud allegations. 

Additionally, the market anticipates that the SEC will:

1. Adjust its ETF requirements to make them clearer for issuers.
2. Speed up the application review process, especially for emerging crypto assets.
3. Introduce long-awaited regulatory frameworks, enabling institutional players to invest in cryptocurrencies with reduced risks.

If analysts’ predictions hold true, 2025 could be a turning point for the crypto-ETF industry, driving significant growth in digital assets. But for this to happen, substantial changes in SEC policies are essential.

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