A new wave of crypto ETFs could arrive in U.S. markets as early as this fall, after more than 90 filings were submitted to the SEC. If approved, the flood of products would broaden how both institutions and retail investors access digital assets — but not every ETF will survive.
Industry observers say approval from regulators is only the first hurdle. Nate Geraci, president of NovaDius Wealth Management, notes that regulators can clear the path, but investors ultimately decide which funds thrive by sending asset flows where they see value.
That dynamic has played out recently: BlackRock’s iShares Bitcoin Trust (IBIT) became the largest ETF debut in history and now holds roughly $85 billion in bitcoin. Ether-based ETFs have also seen renewed interest, taking in about $10 billion since July and roughly $14 billion since launch, according to Bloomberg Intelligence’s James Seyffart.
But analysts caution that demand will vary widely across products. Some issuers are filing spot ETFs structured under the 1933 Act while others have used different frameworks. Geraci expects strong appetite for index-style funds that offer diversified crypto exposure; for smaller tokens, demand will hinge on each project’s fundamentals.
Seyffart warns many issuers will test the market with multiple offerings and that closures are likely. Low flows, duplicate products on the same token and weak liquidity can lead managers to shutter ETFs — a normal part of the ETF ecosystem.
For investors, the takeaway is clear: a surge of new crypto ETFs means more choices, but also more need for selectivity. Consider fund size, fees, custody arrangements, tracking error and liquidity before investing. Market flows — not regulator approval — will separate winners from losers.
Source: CoinDesk. Read the original coverage for full details.