New ETF Filings Hint at Broader Crypto Product Boom Ahead
Investment firms are submitting applications for advanced crypto exchange-traded funds (ETFs), moving from basic spot products to leveraged and actively managed strategies. Recent filings include 21Shares' active crypto ETF and 2x leveraged products for Dogecoin and Sui. Issuers are preparing for a potential approval wave in October, with updates to XRP ETF applications likely influenced by SEC feedback. The approval of spot Bitcoin and Ethereum ETFs has encouraged issuers to pursue more complex offerings. Experts note that actively managed ETFs face challenges similar to traditional ones, with passive funds often outperforming due to Bitcoin's volatility. JPMorgan is exploring financing options against crypto ETFs, indicating mainstream acceptance. However, the SEC has delayed decisions on several ETFs, including Trump Media's Bitcoin-Ethereum ETF and Solana ETFs, citing the need for more time. Major issuers are amending their filings for in-kind redemptions, seen as positive signs. Predictions suggest a batch of approvals may occur in October, despite performance hurdles for active ETFs.
