Cryptocurrency ETF Application Boom: Which Will Be the Next Hot Crypto ETF to Gain Approval?
Related Articles
Following the approval of spot BTC and ETH ETFs, which set a strong precent for the industry, numerous financial institutions have turned their attention towards other promising cryptocurrencies, rushing to submit ETF applications in a bid to secure a share of this growing market.
In particular, several well-known asset management firms have recently filed spot ETF applications for popular cryptocurrencies such as *URLS-ADA_USDT*, *URLS-XRP_USDT*, *URLS-SOL_USDT*, *URLS-LTC_USDT*, and *URLS-DOGE_USDT*, signaling that the ETF market is entering a new phase of rapid growth and heightened interest.
1. Latest Developments in Spot BTC and ETH ETFs
The approval of the spot BTC ETF by the U.S. Securities and Exchange Commission (SEC) in January 2024 marked a turning point for both the cryptocurrency and traditional finance markets. Data shows that spot BTC ETFs saw remarkable trading activity in their first year. In its first month alone, trading volume surged past $38 billion, and by year-end, it had surpassed $660 billion.
According to Coinglass data, as of February 26, the total market value of spot BTC ETFs reached $103.08 billion, while spot ETH ETFs totaled $8.95 billion.
2.Update on the Status of the Top Five Crypto ETF Applications
Beyond spot BTC and ETH ETFs, financial institutions have set their sights on filing new ETF approvals for other highly-valued cryptocurrencies. Specifically, players like Grayscale, VanEck, 21Shares, and Canary Funds have submitted ETF applications to the U.S. SEC for assets including SOL, DOGE, XRP, LTC, TRUMP, BONK, and more.
Token | Filing Institutions |
XRP | Grayscale, Bitwise, 21Shares, Canary Capital, Rex, WisdomTree, etc. |
SOL | Grayscale, Bitwise, VanEck, 21Shares, Canary Capital, Rex, etc. |
DOGE | Grayscale, Rex, VanEck, 21Shares, Canary, Bitwise, etc. |
ADA | Grayscale |
AVAX | Grayscale |
LTC | Grayscale, Canary Capital, Nasdaq |
HBAR | Canary Capital |
DOT | 21Shares |
TRUMP | Rex |
BONK | Rex |
Currently, the progress of ETF applications for the top-five cryptocurrencies, ADA, XRP, SOL, LTC, and DOGE, has drawn significant attention. According to the latest data, different institutions are at varying stages of the application process.
In the second week of February 2025, Grayscale Investments became the first to submit an application for the world’s first spot ADA ETF to the U.S. SEC. The application is now in the SEC's preliminary review phase, with a response expected in the coming months.
At the same time, several institutions, including Bitwise Asset Management, Grayscale, 21Shares, WisdomTree, and Canary Capital, have submitted spot XRP ETF applications. Among them, Bitwise's application has been officially filed through the Cboe BZX Exchange and confirmed by the SEC. These applications remain under review, with key developments anticipated in the coming months.
For the spot SOL ETF, VanEck, Grayscale, Bitwise, 21Shares, and Canary Capital have all submitted applications. Notably, Grayscale and VanEck's applications have entered the public comment period, marking another step forward in the approval process.
Regarding the spot LTC ETF, Nasdaq, Grayscale, and Canary Capital have submitted applications. Nasdaq's application has been accepted by the SEC and entered the preliminary review phase, reflecting the SEC's positive stance toward a potential spot LTC ETF.
In contrast, the spot DOGE ETF has seen slower progress. Although NYSE Arca, Grayscale Investments, Bitwise Asset Management, 21Shares, WisdomTree, and Canary Capital have all submitted applications, the SEC has yet to publicly disclose further details, leaving significant uncertainty about its approval prospects.
3.Feasibility Analysis of Crypto ETFs: Which One Will Be Approved Next?
With former SEC Chairman Gary Gensler officially stepping down and Paul Atkins taking over as the new chairman, investor sentiment has shifted from pessimism to optimism regarding the outlook for spot crypto ETFs. However, disagreements remain on key details, such as which cryptocurrencies the SEC will approve for spot ETFs and when approvals might take place.
According to the latest data from prediction platform Polymarket, the spot SOL ETF is currently the most likely to be approved this year, with an 85% probability. Following closely behind are LTC (75%), DOGE (74%), and XRP (73%).
Bloomberg analysts James Seyffart and Eric Balchunas believe that LTC has the highest likelihood of approval, citing the SEC's classification of LTC as a Bitcoin fork and its designation as a commodity. However, other analysts hold differing views. For example, crypto analyst Kare suggests that ADA may receive approval faster than SOL, pointing to Cardano's relatively favorable relationship with the SEC. Additionally, ADA's strong technical foundation and dedicated community support have made it an attractive option for investors.
In summary, in stark contrast to the Biden administration's strict stance on cryptocurrency, the Trump administration has actively promoted positioning the U.S. as a global crypto hub, working toward a more favorable regulatory framework. This policy shift has accelerated the growth of spot cryptocurrency ETFs in the U.S. and is expected to attract greater institutional participation in the future. As investor confidence in the crypto market strengthens, the sector is experiencing a surge of capital inflows. This trend will undoubtedly drive significant and steady growth in the trading volume and assets under management (AUM) of various spot ETFs, providing strong upside support for cryptocurrencies like *URLS-BTC_USDT* and *URLS-ETH_USDT*. The interplay between the Trump administration's policy direction and market reactions has further fueled the rapid expansion of the crypto ETF market.
Against this backdrop, MEXC has established itself as the premier destination for crypto investors, thanks to its ultra-low trading fees, outstanding customer service quality, and unmatched liquidity. MEXC remains dedicated to providing a secure, convenient, and efficient trading experience while continuously driving industry-wide innovation and sustainable growth.
Disclaimer: This material does not provide advice on investment, tax, legal, financial, accounting, consulting, or any other related services, nor does it constitute advice to buy, sell, or hold any assets. MEXC Learn provides information for reference only and does not constitute investment advice. Please ensure that you fully understand the risks involved and invest with caution. All investment actions are the responsibility of the user and not related to this site.