SEC Reviews 72 Crypto ETF Applications

A Surge of Crypto ETFs: From Bitcoin to Memecoins

The U.S. Securities and Exchange Commission (SEC) is currently reviewing 72 cryptocurrency ETF applications as of April 21, marking an unprecedented wave of proposals aimed at expanding crypto exposure in traditional financial markets. According to Bloomberg analyst Eric Balchunas, these ETFs span a diverse range of assets — from major altcoins like Solana (SOL), XRP, and Litecoin (LTC) to more speculative plays like memecoins, crypto indexes, and even derivatives-based funds.

“Everything from XRP, Litecoin and Solana to Penguins, Doge and 2x Melania and everything in between. Gonna be a wild year,” Balchunas commented on X.

This influx highlights the growing ambition to integrate digital assets deeper into mainstream investment vehicles, offering both retail and institutional investors more structured ways to access crypto markets.

Source: Eric Balchunas

Institutional Interest Grows, But Adoption Uncertain

While institutions are showing increasing interest in crypto, analysts warn that ETF approval doesn’t guarantee success. A recent report by Coinbase and EY-Parthenon revealed that over 80% of institutional investors plan to boost their crypto allocations in 2025. Yet, niche ETFs—especially those tied to lesser-known altcoins or memecoins—may struggle to attract significant capital.

“Having your coin get ETF-ized is like being in a band and getting your songs added to all the music streaming services. Doesn’t guarantee listens but puts your music where the vast majority of listeners are,” Balchunas explained.

In contrast, Bitcoin ETFs have already proven their appeal, raking in over $100 billion in net assets last year. But when it comes to altcoins, Sygnum Bank’s research head, Katalin Tischhauser, predicts inflows will be more modest—likely between a few hundred million and $1 billion.

Derivatives-Based ETFs Could Drive Institutional Uptake

Analysts believe the real game-changer could be ETFs offering exposure through options and derivatives. These structured products provide more flexibility for portfolio strategies, allowing institutions to hedge risks or amplify returns. Jeff Park, Head of Alpha Strategies at Bitwise Invest, suggested that crypto options could trigger “explosive” price movements in assets like Bitcoin.

Derivatives-based ETFs unlock sophisticated strategies that appeal to institutional investors seeking more than just spot exposure. This could lead to a significant shift in how traditional finance engages with crypto markets.

ARK Invest Leads with Staked Solana ETF Exposure

On April 21, ARK Invest made headlines by adding staked Solana (SOL) exposure to two of its existing ETFs. This marks the first time spot SOL has been made available to U.S. investors within an ETF framework, signaling a new frontier for altcoin adoption in regulated markets. As the SEC continues its review process, investors can expect heightened volatility and speculation around which funds will secure approval — and how these new products might reshape the crypto landscape.