Greater than 70 cryptocurrency exchange-traded funds (ETFs) are slated for overview by the US Securities and Trade Fee (SEC) this yr. In accordance with Bloomberg analyst Eric Balchunas, the record contains proposed ETFs holding a spread of belongings, from altcoins to memecoins to derivatives devices.

“Everything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between,” Balchunas mentioned in an April 21 submit on the X platform. “Gonna be a wild year.”

Associated: ARK provides staked Solana to 2 tech ETFs

Unsure institutional demand

The deliberate funds listings come as institutional traders flip more and more bullish on crypto as an asset class. 

Upward of 80% of establishments say they plan to extend allocations to crypto in 2025, in response to a March report by Coinbase and EY-Parthenon. 

Nonetheless, analysts warning that simply because ETFs are authorised for US listings doesn’t assure widespread adoption, particularly for funds holding extra obscure various cryptocurrencies.

“Having your coin get ETF-ized is like being in a band and getting your songs added to all the music streaming services,” Balchunas mentioned. 

“Doesn’t guarantee listens but it puts your music where the vast majority of the listeners are.”

Sygnum Financial institution’s analysis head, Katalin Tischhauser, informed Cointelegraph she expects altcoin ETFs to see cumulative inflows of a number of hundred million to $1 billion, far lower than spot Bitcoin funds. 

Funds holding Bitcoin (BTC) — the primary spot cryptocurrency authorised for itemizing in a US ETF wrapper — attracted upward of $100 billion in web belongings final yr. 

Nonetheless, ETFs utilizing choices and different derivatives to supply structured publicity to cryptocurrencies akin to Bitcoin and Ether would possibly see extra institutional uptake, analysts mentioned. 

Choices on spot cryptocurrencies unlock quite a few potential portfolio methods for traders and will probably catalyze “explosive” value upside for digital belongings akin to Bitcoin, Jeff Park, Bitwise Make investments’s head of alpha methods, mentioned in September.

Choices are contracts granting the suitable to purchase or promote an underlying asset at a sure value.

On April 21, ARK Make investments added publicity to staked Solana (SOL) to 2 of its current ETFs. The asset supervisor mentioned it marks the primary time spot SOL has been accessible to US traders in an ETF.

Journal: ‘Bitcoin layer 2s’ aren’t actually L2s in any respect: Right here’s why that issues