Cryptoverse: Next wave of US crypto ETFs already in the pipeline

Miami: Can you believe how much has changed in just a year? Back in January 2024, everyone was on edge, waiting to see if the U.S. would finally roll out those spot bitcoin ETFs. They were hoping to rake in around $30 billion in the first year.

Fast forward to now, and those ETF issuers are popping champagne! They pulled in a staggering $65 billion in 2024, which sent bitcoin soaring from $43,000 to over $100,000. BlackRock’s iShares Bitcoin Trust is now the biggest success story in ETF history.

But hold on, this is just the beginning! Crypto enthusiasts are buzzing with excitement. After those ETFs celebrate their first birthday on January 10, President-elect Donald Trump, who’s all about crypto, will take office again. Many believe this will kick off a golden age for digital assets.

New applications for crypto products are piling up at the regulators’ office. Joe McCann, the CEO of a digital assets hedge fund, says everyone’s realizing how much money is out there. With a friendlier administration, it’s the perfect time to pitch new ideas.

Even though Gary Gensler, the SEC chair under Biden, had to approve those first bitcoin ETFs after a court ruling, he’s still warning about the risks in crypto. But with Trump’s appointee Paul Atkins likely taking over, the mood is shifting toward supporting digital assets.

As of late November, companies like VanEck and 21Shares are jumping on this wave, filing at least 16 applications for new ETFs that track various cryptocurrencies like Solana and Ripple’s XRP.

It’s been a busy time for the crypto world, especially leading up to the election. Many in the industry were betting on a lighter regulatory touch, no matter who won. Matthew Sigel from VanEck mentioned that it takes months to get approvals, so they wanted to be ready.

Besides XRP and Solana, there are plans for products linked to Litecoin and HBAR. The excitement is palpable, and everyone’s eager to see who the new SEC chair will be. Now that they have that clarity, it’s game on!

But it’s not just about single-coin products. New derivatives are set to launch right after Trump’s inauguration, and there are even hybrid products waiting in the wings. Some issuers are looking to create funds that use bitcoin ETF options to protect investors from losses.

Federico Brokate from 21Shares believes we’re just scratching the surface of product innovation in the U.S. He’s excited about the potential for funds that track baskets of cryptocurrencies or mix assets like bitcoin and gold.

Of course, these new products come with risks. While bitcoin ETFs have done well, ether ETFs launched in July haven’t seen the same success, pulling in only $12.8 billion. Bitcoin’s price skyrocketed, but ether lagged behind.

Trading in bitcoin and ether futures has been around for a while, but those are the only coins with a futures market. This gives regulators some confidence in these assets. But it’s still unclear how quickly the new SEC chair will approve the more innovative products.

Despite the uncertainty, the crypto asset-management industry is buzzing with excitement. As Sigel from VanEck puts it, the only limit to what products come out next is human creativity.