With Gary Gensler’s impending resignation as SEC chair, the crypto market has reacted with an uptick of ETF filings against his expected regime change.
ETF Filings on Overdrive Before Gensler’s Demise
Crypto companies have been flooding the commission with exchange-traded fund proposals in recent weeks, and with Gary Gensler’s final day as SEC chair on Jan. 20, hopes are high among crypto firms for a new beginning: at least four new filings emerged on Jan. 17.
ProShares, one of the pioneers of the first Bitcoin-linked ETF, filed for a Solana Futures ETF. It would provide investors with access to Solana’s price movements through future contracts. Industry players such as James Seyffart, ETF analyst, do not see it becoming a short-term reality, citing the dearth of large, liquid Solana futures markets.
Major Players Join the Filing Frenzy
Digital asset manager CoinShares filed an application for its “CoinShares Digital Asset ETF” to track its proprietary Compass Crypto Market Index. ProShares also filed for leveraged, inverse and futures ETFs linked to XRP, while other firms including Bitwise, 21Shares and WisdomTree submitted spot XRP ETF proposals.
Tidal DeFi, meanwhile, pitched its Oasis Capital Digital Asset Debt Strategy ETF, which will also invest in debt but related to companies within the crypto ecosystem. VanEck filed an “Onchain Economy” ETF that has a wider mandate to include more crypto-related businesses.
Industry Reactions to Gensler’s Exit
Gensler’s term, which began in April 2021, marked an unusually aggressive period in regulatory policy, with lawsuits filed against giants such as Coinbase and Binance. His departure foreshadows potential policy shifts, hence the current ETF filing frenzy.
Eric Balchunas, Senior ETF Analyst, had this to say about events:
“Gensler wasn’t even out of the building for five minutes, and the ETF industry unleashed a massive crypto filing frenzy.”
The spate of filings underscores the crypto sector’s anticipation of a regulatory pivot that could pave the way for broader ETF approvals in the near future.
