Key Insights
- Gensler has spent his last day in office, and the crypto industry is reacting significantly to this.
- Asset managers have filed about a dozen spot, inverse and futures ETFs for Solana and XRP so far.
- ETF analysts note that there might be some friction with the Solana ETF approvals, compared to other cryptocurrencies.
- The latest developments show the expectations of a more favorable environment under Paul Atkins, Gary Gensler’s successor.
Gary Gensler is preparing to step down as chair of the US Securities and Exchange Commission on 20 January.
In an unexpected turn of events, this development has sparked a wave of action in the crypto industry, with asset managers submitting a wave of ETF applications.
This signals the industry’s anticipation of regulatory changes under the new chair, Paul Atkins as many expect the incoming Trump administration to adopt a more crypto-friendly approach.
Here’s everything to know about this new development.
A Wave of Applications Hits the SEC
This wave of ETFs started around 17 January, with at least four of them filed in a single day.
Among these issuers was ProShares, which is recognized for launching the first Bitcoin-linked ETF.
This asset manager submitted an application for a Solana Futures ETF, with the aim to provide investors with exposure to $SOL through futures contracts, instead of direct ownership.
According to insights from ETF analyst James Seyffart, however, this move from ProShares could come with its own share of hurdles.
One of these include the lack of CME futures for Solana.
Seyffart also questioned whether Coinbase’s SOL futures market has enough liquidity for this move from ProShares.
This is similar to another move from Volatility Shares, which filed a similar Solana-focused ETF last year in November.
According to Seyffart, even under a supportive administration, the Solana ETFs might have some strong friction to deal with before launch—at least until 2026.
Broader ETF Filings by Key Industry Players
The ETF applications extended past Solana between this 17 January start and the time of writing.
CoinShares also submitted an application for a “CoinShares Digital Asset ETF,” which aims to track its proprietary Compass Crypto Market Index.
Asides from Solana, ProShares submitted multiple filings for leveraged and futures ETFs tied to XRP.
This follows similar applications from other asset managers like Bitwise, Canary Capital, 21Shares, and WisdomTree.
Tidal DeFi also joined the bandwagon by filing its own Oasis Capital Digital Asset Debt Strategy ETF (DADS).
This DADS ETF plans to invest in debt instruments connected to miners and energy providers within the crypto ecosystem.
Earlier in the week, VanEck also filed an “Onchain Economy” ETF, which aims to invest several crypto-focused businesses including software developers, mining companies, exchanges, infrastructure providers, and much more.
According to insights from Nate Geraci, President of The ETF Store, these ETF applications shows that the crypto industry is positioning itself for the shift in regulation.
A Reflection on Gensler’s Tenure
Gary Gensler began his tenure as SEC Chair in April 2021, and made a mark on the crypto industry over the next three years with a wave of enforcement actions against major companies.
Some of the most popular of these included Coinbase, Binance, Ripple, Uniswap, OpenSea and countless others.
However, with his final day in office, the crypto industry is eagerly preparing for what might be a favorable era under Atkins, his successor.
According to Bloomberg Senior ETF analyst Eric Balchunas, the speed and frequency of these ETF filings is interesting.
“Gensler wasn’t even out of the building for five minutes,” he noted “and the ETF industry unloaded a massive crypto filing frenzy.”