Various cryptoasset ETFs to flood the U.S. market in Q4

About a dozen multi-coin ETFs investing in altcoins are being applied for

Demand for multi-coin ETFs is still uncertain

New cryptocurrency exchange-traded funds (ETFs) are expected to flood the U.S. market in the fourth quarter of this year.

According to Reuters on the 24th (local time), after the U.S. Securities and Exchange Commission (SEC) announced new standards last week that loosened fund launch requirements, applications for multi-coin ETFs that invest in a variety of cryptocurrencies have been lining up.

Under the updated standards, multi-token ETFs linked to a variety of cryptocurrencies — from Ripple and Solana to meme coins like Dogecoin — have become possible.

The existing cryptocurrency ETFs launched earlier in 2024 were issued under the prior rules, which were stricter regarding issuers and exchanges and focused on Bitcoin and Ethereum.

There are currently 21 U.S. ETFs that invest in Bitcoin or Ethereum.

Steven McClurg, founder of Canary Capital Group, a digital asset investment manager that designs and launches ETFs, said, "About 12 applications have been submitted to the SEC so far, and more applications will come."

Analysts predicted the first fund approved under the new rules would be launched in early October.

According to the new listing standards announced by the SEC last week, individual regulatory review is no longer required when applying for a cryptocurrency ETF, and if preset criteria are met, the fund can be launched without individual approval procedures. Industry sources say this will shorten the approval period for new cryptocurrency products from up to 270 days to under 75 days.

Jonathan Gross, a partner at DGIM Row, said the fourth quarter of 2025 will bring a boom to cryptocurrency ETF issuers.

Grayscale Investments already launched the Grayscale CoinDesk Crypto5 ETF earlier this week. The fund was originally a private fund that invested in altcoins in addition to Bitcoin and Ethereum, but it applied to convert to an ETF, and the SEC decided last week to allow this.

Grayscale's ETF holds Bitcoin and Ethereum, and also holds XRP, Solana, and Cardano.

Under the new standards announced by the SEC, ETFs could be launched quickly if the coins are already traded on regulated markets or if they have futures contracts regulated by the U.S. Commodity Futures Trading Commission (CFTC) that have been held and traded for at least six months.

However, it is uncertain whether there will be strong demand for the dozens of multi-coin cryptocurrency ETFs that invest in lesser-known coins.

Kyle DaCruz, director of digital asset products at asset manager VanEck, said, "Tokens you've never heard of will abound, and it will take weeks or months to educate, not years like with Bitcoin."

Guest reporter Jung-A Kim kja@hankyung.com