Exchange-traded frenzy
The SEC’s January approval of spot bitcoin ETFs was a big hurdle cleared, as US crypto fund plans have only ramped up from there.
You probably know about the imminent launches of US spot ETH funds. A source told Blockworks that issuers could hear from the SEC “at any point” about a listing date for those given the “light” last round of registration amendment revisions.
Industry watchers now wonder whether the agency will let those S-1s go effective prior to July 4, or if it will take a bit more time.
But in some ways that seems like old news, as US spot solana ETF plans have stolen some headlines.
VanEck — a firm already with a spot bitcoin ETF (and a planned ETH product) — led the charge on that front via a Thursday filing in the US. The proposal differs from a planned SOL fund submitted by 3iQ in Canada last week and could be tough to get past regulators at this point.
Still, 21Shares joined the paperwork party by filing for a US solana ETF of its own on Friday. The company has a Solana Staking ETP trading in Europe with $850 million in assets.
“While including a crypto token in a CME futures contract has legal precedent, it should not be the sole criterion for ETF eligibility,” 21Shares legal head Andrew Jacobson said in a statement.
It’s probably worth mentioning too that ETF powerhouse State Street Global Advisors said Wednesday it was partnering with Galaxy Digital to launch “the next generation of digital asset-based strategies.”
The firms together filed for three funds, including a Digital Asset Ecosystem ETF that would invest in crypto equities and futures contracts, as well as in ETFs that hold spot crypto or futures.
SSGA’s entrance is certainly something to watch, particularly if they end up choosing to launch spot crypto products. The company has plenty of brand recognition and its physically backed gold ETF (GLD) is the largest of its kind, with roughly $62 billion in assets.
Even before the SOL and SSGA fund filings, Hashdex revealed plans (on June 18) for a fund that would hold both BTC and ETH.
Not to mention the SEC is still considering a planned spot bitcoin ETF that combines BTC exposure with carbon credit futures. Oh, and a separate fund proposed Wednesday would invest in futures and ETFs related to both bitcoin and gold.
Bottom line, the crypto-related ETF stack on the SEC’s desk is sizable — and likely to get bigger.
US spot ETH and SOL ETFs may have seemed like an utter fantasy in early 2023. But BlackRock would enter the spot bitcoin fund race mid-year. Grayscale then won a lawsuit, the SEC cleared ether futures ETFs and, last month, approved the 19b-4s for spot ETH ETFs.
To some, the SEC giving its blessing to a SOL ETF might feel like a pipe dream, and maybe it is (at least in the near-term). But it’s hard to deny we appear to be in a new era of crypto ETF innovation.
If the SEC filings webpage isn’t among your bookmarked tabs, you might want to add it.