A wave of crypto exchange-traded funds (ETFs) is poised to hit the U.S. market as early as this fall, potentially transforming the way investors — both institutional and retail — access the digital asset space. However, while this development is being hailed as a major step toward mainstream adoption, experts warn that many of these products may fail.
Over 90 ETF Applications Await SEC Approval
Currently, over 90 crypto ETF applications have been filed with the U.S. Securities and Exchange Commission (SEC). Industry experts expect that most of these will gain approval, provided they meet the final listing requirements.
According to Nate Geraci, President of NovaDius Wealth Management:
“The crypto ETF floodgates are set to open this fall, and investors will soon be swimming in these products.”
Geraci emphasizes that, while regulators hold the power to approve these funds, investors will determine which ETFs succeed or fail.
“The ETF market is a meritocracy — investors vote with their money,” he added.
Strong Demand for Diverse Crypto Investment Options
Investor appetite for diverse and accessible crypto products remains strong. Geraci pointed out that initial demand for futures-based Solana and XRP ETFs was higher than expected, which signals that spot ETFs under the 1933 Act could attract significant inflows — similar to the success of Bitcoin and Ether ETFs.
The iShares Bitcoin Trust (IBIT), managed by BlackRock, became the most successful ETF launch in history, now holding nearly $85 billion worth of Bitcoin.
Meanwhile, Ether ETFs have seen renewed interest, with inflows of $10 billion since July, surpassing those of Bitcoin ETFs, according to James Seyffart, an ETF analyst at Bloomberg Intelligence.
Experts believe index-based crypto ETFs could see strong uptake, offering investors broad exposure to the digital asset ecosystem. However, niche altcoin ETFs may struggle to attract liquidity, leading to closures.
As Seyffart notes:
“Many funds may launch, but closures are likely for niche altcoin ETFs.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.