The US Securities and Exchange Commission (SEC) has decided to speed up the approval process for crypto exchange-traded products (ETPs). It sounds like a great idea, right? Well, not so fast. While it might lead to a flurry of new crypto offerings, don’t start planning your crypto yacht just yet, says one industry exec.
“Sure, opening the door to crypto ETPs as early as October will likely result in a bunch of new products hitting the market,” said Matt Hougan, chief investment officer at Bitwise, in a report on Monday. “It’s pretty obvious, and history shows us that this could lead to a surge, but it doesn’t guarantee they’ll actually succeed.” 😬
Hougan warns that launching a crypto ETF isn’t like lighting a sparkler on New Year’s Eve, promising endless fireworks. “The mere existence of a crypto ETP does not guarantee inflows,” he pointed out. “You still need actual interest in the underlying asset. I mean, good luck getting people excited about Bitcoin Cash unless it suddenly becomes cool again.” 💸
Crypto ETFs’ “mere existence” is not a ticket to the moon
In case you didn’t catch it: just because an ETF exists doesn’t mean it’s going to rake in the dough. “You need more than just a crypto ticker symbol. You need people actually caring about the asset behind it,” Hougan added. So if you’re waiting for Dogecoin or XRP to moon just because they’re in an ETF-spoiler alert-it might not happen anytime soon. 🙄
But wait, there’s a glimmer of hope! Hougan points out that crypto ETFs are still positioned for success when “fundamentals turn around.” ETFs provide an easier way for traditional investors to hop on the crypto bandwagon-when they finally stop being terrified of volatility. Imagine the flood of money that might pour in once crypto prices stop acting like a roller coaster. 🎢
However, don’t get too excited just yet. Sygnum’s research head, Katalin Tischhauser, had some sharp words for the crypto ETF hype machine. In February, she said that while the buzz around crypto ETFs is deafening, no one can explain where all this supposed demand is going to come from. Ouch. 🔥
And just to really drive the point home, two new altcoin ETFs tracking XRP and Dogecoin are expected to launch in the US this week. That’s right, we’re still hoping for a Doge to the moon situation. Good luck with that. 🚀
Remember that on July 3, the US saw the debut of its first Solana (SOL) staking ETF. It wrapped up its first trading day with $12 million in inflows. “A healthy start,” said Bloomberg’s James Seyffart. Let’s not forget though, that’s small potatoes in the grand scheme of things. Still, a win is a win, right?
At present, the SEC is taking its sweet time reviewing spot crypto ETFs, looking at each case individually. This means issuers have to show they’ve crossed every “t” and dotted every “i”-like proving that the market is liquid and not prone to manipulation. That review can take up to 240 days, and honestly, it’s a toss-up whether approval will even happen. 🕰️
SEC’s new process: Fast-tracked ETFs-if they follow the rules
But there’s good news on the horizon. If the SEC gets its act together with the new process it’s working on, crypto ETFs that meet the standards would have “virtually guaranteed” approval. And here’s the kicker: approvals could come within 75 days. Can you imagine? That’s like speed-dating for crypto funds. 💨
As Bitfinex analysts said back in August, we might not see any major rallies in altcoins until crypto ETFs targeting the riskier assets start getting greenlit. That might just be the moment when things get interesting. Fingers crossed, right? 🤞
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2025-09-17 06:10