The cryptocurrency market has been flourishing, attracting an increasing number of investors. To enable more traditional investors to participate, cryptocurrency exchange-traded funds (ETFs) have emerged. After Gary Gensler’s departure, the U.S. Securities and Exchange Commission (SEC) has adopted a more friendly stance towards cryptocurrencies. The SEC’s cryptocurrency working group has stated that it will clarify the approval rules for crypto ETFs. Recently, several spot ETF applications for crypto assets have made significant progress.

ETF Submission Process

In the U.S., the issuance and trading of ETFs are strictly regulated by the SEC. To be approved, a cryptocurrency ETF must go through the following key steps:

1. Registration Statement: The ETF issuer must submit a registration statement to the SEC, detailing the fund’s investment objectives, strategies, risks, fees, and other information. This step ensures that investors are fully informed about the ETF’s product characteristics.
2. 19b-4 Filing: The exchange must submit a 19b-4 filing to seek SEC approval to modify its rules to allow the new ETF to be listed on its exchange. This step is a compliance requirement at the exchange level.
3. SEC Review: The SEC will conduct a comprehensive review of the registration statement and the 19b-4 filing to evaluate whether they comply with relevant laws and regulations and whether investor protection measures are adequate. The SEC may request additional information or amendments from the issuer.
4. Approval for Listing: If the SEC finds everything in order, it will approve the registration statement and the 19b-4 filing. The ETF can then be listed on the exchange for investors to buy and sell.

Throughout this process, the SEC begins a 21-day public comment period after receiving the filings, and it may delay the review multiple times. The longest review period can be 240 days, with key stages involving 45-day, 45-day, 90-day, and 60-day reviews. The approval process for an ETF may involve several modifications and take months or even years to complete.

Bitcoin and Ethereum Spot ETFs

In January 2024, the SEC approved the first 11 Bitcoin spot ETFs, marking a milestone event that opened the door for traditional investors to enter the Bitcoin market. Investors no longer need to directly purchase and store Bitcoin; they can trade it through traditional brokerage accounts. BlackRock’s iShares Bitcoin Trust (IBIT) saw a record $38 billion in net inflows in its first year. By the end of 2024, the total assets under management (AUM) for Bitcoin ETFs surpassed $110 billion, nearly overtaking gold ETFs ($128 billion).
In July 2024, Ethereum’s spot ETF was approved. While initial fund inflows were not as high as Bitcoin’s, it still ranked among the top 20% of ETF issuances in the U.S.
In January 2025, Bitwise launched the first ETF to track both Bitcoin and Ethereum, further lowering the investment threshold.

Mainstream Asset ETFs Developments

SOL ETF

• Applicants: Five institutions participated, including Grayscale (trust conversion), Bitwise, VanEck, 21Shares, and Canary Capital.
• Key Developments:
  • On January 29, 2025, Cboe resubmitted the 19b-4 filings for Bitwise and VanEck, with SEC approval deadlines on March 30 and April 3, respectively.
  • The SEC accepted Grayscale’s SOL ETF application for the first time. Previously, SOL had been classified as a “security,” signaling a shift in regulatory stance.

XRP ETF

• Applicants: Grayscale, Bitwise, Canary Capital, 21Shares, and WisdomTree.
• Key Developments:
  • On January 30, Grayscale submitted a trust conversion application for XRP, and on February 6, Cboe submitted the 19b-4 filings for the other three applicants to enter the SEC review process.

LTC ETF

• Applicants: Grayscale and Canary Capital submitted applications.
• Key Developments:
  • The SEC accepted the 19b-4 filings from both institutions in January, initiating a 21-day public comment period. Bloomberg analysts predict that LTC may be the next asset to be approved.

DOGE ETF

• Applicant: New York Stock Exchange Arca.
• Key Developments:
  • The New York Stock Exchange Arca has submitted the 19b-4 filing for a spot Dogecoin ETF to the SEC.

In addition to asset-specific ETFs, asset management company VanEck submitted an application for an “Onchain Economy” ETF on January 15. According to the filing, the fund would invest in crypto companies across the industry, including software developers, mining companies, cryptocurrency exchanges, infrastructure builders, payment companies, and other enterprises in the cryptocurrency space. Crypto asset ETFs are evolving towards a broader and more compliant direction.

Conclusion

The explosion of crypto ETFs in 2025 is due to a fundamental shift in SEC regulatory stance, with the new leadership moving from “enforcement first” to “regulation-driven guidance.” The acceptance of SOL and LTC ETF applications, which were previously defined as securities, serves as a prime example of this change. The market landscape has expanded from the dominance of Bitcoin and Ethereum to a multi-asset competition, including SOL, XRP, and others, accelerating the integration of the crypto industry into traditional finance. However, challenges such as high volatility, legal disputes (e.g., the XRP lawsuit), and technical risks remain significant. In the future, with the advancement of the “Bitcoin+” ETF plan and the deepening of cross-border regulatory cooperation, crypto ETFs will become a core bridge connecting digital assets to global capital. The approval of each asset ETF is undoubtedly a major leap forward for the crypto industry.