Major investment firms have rushed to file new cryptocurrency ETF proposals following Gary Gensler's departure as SEC Chairman, marking a potential shift in the regulatory landscape for digital assets.
CoinShares led the charge with dual ETF applications for Litecoin and XRP, aiming to provide mainstream investors easier access to these cryptocurrencies through traditional investment vehicles. These filings come as Litecoin's value has jumped 80% over six months, while XRP builds on momentum from recent legal clarity in the US.
Grayscale joined the wave by seeking to transform its existing Litecoin and Solana trusts into ETFs. The firm's move represents an expansion beyond Bitcoin-focused products into broader cryptocurrency offerings.
In a bold push into more speculative territory, REX Shares and Osprey Funds submitted applications for ETFs tracking memecoins, including Dogecoin, TRUMP, and BONK. These proposals reflect growing appetite for higher-risk cryptocurrency investments.
The surge in applications coincides with leadership changes at the SEC. Acting Chairman Mark Uyeda currently heads the agency while Paul Atkins, President Trump's nominee, awaits confirmation. Industry observers anticipate Atkins' pro-business background could usher in more favorable conditions for cryptocurrency products.
While approval for these new ETF proposals remains uncertain, the flurry of filings suggests investment firms are betting on a more accommodating regulatory environment for cryptocurrency investment products under new SEC leadership.