The U.S. government shutdown has reportedly put crypto-related activities on hold, with the Securities and Exchange Commission (SEC) suspending its operations as it falls under federal services. However, amid this temporary halt, several funds have fully charged their battery and filed for crypto Exchange-Traded Funds (ETFs) on Friday.
More than a dozen funds have filed with the SEC for crypto-related ETFs, and the reason for this sudden surge is simple: the commission has introduced general standard listing rules for ETFs that allow exchanges to list products without requiring a lengthy review period. This is just one part of the SEC’s several other listing standards.
According to Nate Geraci, an ETF expert, more crypto-related ETF filings are about to explode in the coming months, charging the ETF ecosystem. In January 2025, he predicted that 2025 would be the year of crypto ETFs.
Major firms file for crypto ETFs
REX-Shares and Osprey Funds (REX-Osprey) filed for 21 ETFs, marking a significant move in the evolving crypto ETF ecosystem. Their ETFs include products tracking SUI, BCH, and HYPE tokens.
Meanwhile, investment firm Defiance ETFs, LLC, has filed documents with the SEC to launch ETFs that let investors bet on the performance of both tech stocks and digital assets. In other words, the firm has filed for ETFs that will track leveraged funds (3X) based on cryptocurrencies.
Several analysts have weighed in on the recent surge in SEC filings. James Seyffart, Bloomberg Intelligence Analyst, wrote on an X post: “Things are getting wild,” referring to Defiance’s fresh 3X products, because it goes against the expectation that only a 2X leverage range is allowed for fresh filings.
The sudden wave of firms filing for crypto ETFs marks that the SEC’s streamlined rules are advancing the ETF landscape. The final approval for nearly 30 ETF applications would take time, as the SEC is not reportedly reviewing new filings due to the ongoing shutdown in the US. Worth noting, the crypto market is up, and so are related activities, such as ETF filings.
