Crypto ETF Filings Surge After Gary Gensler’s Resignation

The resignation of former SEC Chair Gary Gensler, long viewed as an adversary of the cryptocurrency industry, has catalyzed a dramatic increase in crypto asset exchange-traded fund (ETF) applications. 

Analysts and industry participants are now optimistic about a more accommodating regulatory environment under the Trump administration, sparking a wave of innovative ETF proposals.

Crypto ETF Application Surge

As of January 21, Bloomberg ETF analyst Eric Balchunas reported that 33 crypto ETFs have been submitted to the SEC, a figure that has doubled since Gensler’s departure. 

This number is expected to climb to 50 in the coming weeks, with proposals spanning a range of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), and Litecoin (LTC).

Significantly, the new wave of ETF filings includes products targeting meme coins. Rex Shares has filed for ETFs tied to coins like DOGE, BONK, and the newly launched TRUMP coin—President Donald Trump’s official cryptocurrency, introduced days before his second inauguration.

Also read: Understand How BTC ETF Works in Detail Here, Don't Just FOMO

The TRUMP ETF: A Novel Investment Opportunity

The REX-Osprey™ TRUMP ETF, if approved, will be the first ETF to track a meme coin directly associated with a political figure. 

The fund plans to allocate 80% of its net assets to the TRUMP coin, with the remaining assets potentially diversified into other cryptocurrencies and non-U.S. crypto ETFs.

According to the filing, the TRUMP ETF is structured under the Investment Company Act of 1940, similar to crypto futures ETFs. This framework allows for a mix of derivatives and underlying assets, providing flexibility and potentially accelerating approval timelines compared to ETFs filed under different regulatory pathways.

Fast-Track Launch Potential

Bloomberg analysts have suggested that the TRUMP and DOGE ETFs could reach the market before other proposed products for assets like XRP and Solana. 

These ETFs benefit from their ’40 Act filings, which have a shorter 75-day approval timeline, compared to the 240-day clock required for other types of applications.

Eric Balchunas noted:

“These filings could hit the market in early April, ahead of XRP, Solana, and Litecoin ETFs. The team behind REX has decades of experience in the ETF industry, lending credibility to their applications.”

Also read: SEC Launches Crypto Task Force Under Trump Administration: A New Era for Digital Assets Regulation

Growing Optimism Under the Trump Administration

The surge in ETF applications reflects a renewed sense of optimism in the crypto industry, fueled by expectations of a more favorable regulatory approach from the Trump administration. 

President Trump has publicly expressed support for cryptocurrencies and promised to transform the U.S. into a global hub for digital assets.

Additionally, the SEC’s leadership transition under acting Chair Mark Uyeda and the potential confirmation of pro-crypto nominee Paul Atkins has encouraged asset managers to submit innovative proposals.

Market Implications and Future Outlook

The ETF filings signal a broader trend of mainstream financial integration for digital assets. If approved, these ETFs could:

1. Boost Market Liquidity: By enabling institutional and retail investors to gain exposure to cryptocurrencies through familiar investment vehicles.
2. Enhance Regulatory Clarity: Establishing ETFs for a wide range of assets, including meme coins, could set important precedents for future approvals.
3. Drive Innovation: The diverse range of proposed ETFs showcases the industry’s creativity in adapting to evolving market demands.

As the SEC evaluates these applications, the industry remains hopeful that the Trump administration’s pro-crypto stance will lead to a transformative era for digital asset investment.

With growing momentum and the potential for landmark approvals, the coming months could redefine how cryptocurrencies integrate into traditional financial markets, paving the way for broader adoption and innovation.

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FAQs

Why have crypto ETF applications surged after Gary Gensler's resignation?

Gary Gensler was perceived as a stringent regulator in the crypto space. His resignation has sparked optimism for a more favorable regulatory environment under the Trump administration, leading to a wave of innovative ETF proposals.

What is unique about the TRUMP ETF?

The REX-Osprey™ TRUMP ETF, if approved, would be the first to track a meme coin associated with a political figure. It plans to allocate 80% of its assets to the TRUMP coin, with additional diversification into other cryptocurrencies and crypto ETFs.

When could these new crypto ETFs hit the market?

Crypto ETFs, such as the TRUMP and DOGE ETFs, filed under the ’40 Act, could be approved within 75 days. Bloomberg analysts project they might reach the market as early as April, ahead of other proposed ETFs for assets like XRP and Solana.

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