Several Crypto ETF Applications Follow As Gary Gensler Exits the SEC

A surge in crypto ETF applications emerged as Gary Gensler’s tenure at the SEC ended today. 

At least five new filings were submitted to the SEC after US business hours on Friday, coinciding with Gensler’s final day as the agency’s chair.

New Crypto ETF Proposals Flood the SEC

Among the notable filings, Tidel Finance introduced the “Oasis Capital Digital Asset Debt Strategy ETF” (DADS). This fund plans to focus on debt securities tied to several sectors, including digital asset mining, companies directly holding digital assets, payment companies, and more. 

ProShares also filed for a Solana Futures ETF. This follows a December filing for a similar Solana ETF by VolatilityShares. ProShares is already familiar with crypto ETFs, having launched an Ethereum ETF approved by the SEC in July 2024.

“Gensler wasn’t even out of the building for 5 minutes and the ETF industry unloaded a massive crypto filing frenzy. Half a dozen so far,” wrote ETF analyst Eric Balchunas.

CoinShares entered the fray with a proposal for the “CoinShares Digital Asset ETF.” This fund is tied to the CoinShares-Compass Crypto Market Index, which includes 10 cryptocurrencies. 

Bitcoin and Ethereum dominate the index at 70%, with XRP, Cardano, Chainlink, and others making up the remainder.

VanEck joined the action with plans for an actively managed “Onchain Economy ETF,” aiming to invest in blockchain-powered businesses and ecosystems.

“They waited until the end of business day on the last of the Biden SEC to start filing crypto ETF’s… Headed for the Trump pro-crypto admin,” wrote Chad Steingraber.

Leadership Transition Sparks Optimism

The timing of these filings suggests the crypto industry anticipates a friendlier regulatory environment under incoming SEC leadership. 

Paul Atkins, set to replace Gensler, is widely regarded as supportive of innovation in the crypto space. His tenure begins as Donald Trump prepares to return to the presidency next week.

Speculation is mounting that Trump will sign executive orders addressing key challenges faced by the crypto industry. These could include easing banking restrictions and revisiting the controversial SAB 121 policy. 

Meanwhile, XRP has hit an all-time high ahead of Gensler’s exit. Anticipation of an XRP ETF approval and a possible policy shift under the new administration pushed the token to its highest value in over seven years.

Despite Gensler’s departure, his stance on cryptocurrencies remained evident until the end. On his last day, he imposed a $38 million fine on the Digital Currency Group. 

Just days earlier, he had reiterated his concerns about the crypto industry. He described it as unsafe and rife with misconduct. 

Also, Gensler appealed a court ruling that XRP sales to retail investors did not qualify as investment contracts.

The wave of ETF applications reflects optimism for a more supportive regulatory space under the new SEC leadership. 

With industry leaders preparing for potential changes, this week’s developments signal a pivotal moment for the future of crypto regulation in the United States.