Crypto ETF Surge Post-Gensler: From Bitcoin to Trump Memecoins

Following the resignation of former SEC Chair Gary Gensler, the crypto ETF landscape has seen a dramatic doubling in applications, now reaching 33 filings. This surge includes unconventional offerings like ETFs based on Dogecoin, Solana, Litecoin, and even a Trump-themed memecoin.

• Crypto ETF applications double post-Gensler’s exit.
• Unique offerings like Dogecoin and Trump-themed ETFs emerge.
• Bloomberg predicts up to 50 filings soon.
• Spot Bitcoin ETFs expected to lead despite variety.

Bloomberg analyst Eric Balchunas is tracking this trend closely, predicting that the number of filings could hit 50 within weeks.

“The list doubled since Gensler left the building on Friday. Won’t be surprised if it hits 50 within a week or two,”

he remarked. While this rush signals a growing appetite for crypto integration into mainstream finance, Balchunas cautions,

“it’s getting crazy,”

yet emphasizes that the bulk of investment is likely to remain with spot Bitcoin ETFs.

The filings aren’t just about Bitcoin and Ether anymore. REX Shares, an investment firm, is pushing the envelope with ETFs tracking the likes of the TRUMP memecoin, Bonk, and Dogecoin. Their TRUMP ETF plans to allocate 80% of its net assets to the TRUMP memecoin, with the remainder possibly invested in other cryptos and non-US crypto ETFs. This move follows closely on the heels of Trump’s inauguration and the appointment of new SEC Commissioner Mark Uyeda, suggesting a potential shift in regulatory attitudes.

However, not all are optimistic about the future of these new ETFs. JPMorgan’s Kenneth Worthington offers a more cautious outlook, predicting weaker demand for these products.

“We don’t see a next wave of cryptocurrency [exchange-traded product] launches as being meaningful for the crypto ecosystem given much smaller market capitalization of other tokens and far lower investor interest,”

he stated. This serves as a reminder that while innovation in the crypto space thrives, market dynamics can be unpredictable.

Despite these concerns, the success of spot Bitcoin ETFs last year set a high bar, described as the greatest ETF launch in history, led by BlackRock’s iShares Bitcoin Trust. Bitcoin continues to reign supreme, yet the diversification into altcoins and memecoins underscores the market’s evolving nature and its desire for variety.

As we navigate this crypto ETF frenzy, it’s crucial to maintain a balanced perspective. The rush of filings indicates optimism and a potential regulatory thaw, yet the market’s preference for mainstream assets like Bitcoin remains strong. For those hoping for a crypto portfolio filled with everything from Dogecoin to Trump-themed tokens, the reality might lean more towards Bitcoin-centric investments. However, the push towards diverse ETFs highlights the relentless spirit of innovation and the pursuit of financial freedom that defines the crypto space.

The Gensler Effect

Gary Gensler’s departure from the SEC has been a significant catalyst for this surge in ETF applications. Gensler, known for his cautious approach towards cryptocurrencies, often emphasized investor protection and regulatory oversight. His exit might signal a more crypto-friendly environment, as evidenced by the flood of new filings. The SEC now faces 33 applications, a clear indication of the industry’s readiness to engage with traditional finance on a broader scale.

The Rise of Memecoin ETFs

The emergence of ETFs based on memecoins like Dogecoin and the TRUMP memecoin is a testament to the crypto market’s diversity. Memecoins, often starting as a joke or a social media phenomenon, have captured the public’s imagination. REX Shares’ TRUMP ETF is particularly noteworthy, with plans to invest the majority of its assets in the TRUMP memecoin. This diversification beyond Bitcoin and Ether showcases the market’s willingness to explore new avenues, aligning with the principles of effective accelerationism (e/acc) that promote rapid technological advancement and decentralization.

Market Predictions

Eric Balchunas from Bloomberg sees the number of ETF filings potentially reaching 50 soon, reflecting a growing confidence in the crypto market.

“The market picks the winners and losers and it generally favors the more mainstream stuff. I see something similar playing out here,”

he added, suggesting that while the variety of ETFs is expanding, investor interest might still favor the established players like Bitcoin.

On the other hand, JPMorgan’s Kenneth Worthington offers a counterpoint, predicting weaker demand for these new ETFs. He cites the smaller market capitalization and lower investor interest in other tokens compared to Bitcoin as reasons for caution. This highlights the importance of considering the broader market dynamics when assessing the potential success of these new financial products.

Bitcoin’s Dominance

The success of spot Bitcoin ETFs last year, led by BlackRock’s iShares Bitcoin Trust, underscores Bitcoin’s continued dominance in the crypto market. Described as having the greatest ETF launch in history, this achievement sets a high standard for new entrants. While Bitcoin remains the king, the inclusion of altcoins and memecoins in ETFs demonstrates a market eager to embrace variety and innovation.

Altcoins and memecoins, despite their volatility and speculative nature, play crucial roles in the broader crypto ecosystem. They offer niches that Bitcoin, with its focus on being a store of value and a decentralized currency, might not serve as effectively. This aligns with the e/acc philosophy of pushing the boundaries of what’s possible in finance and technology.

Regulatory Challenges

The appointment of Mark Uyeda as the new SEC Commissioner could signal changes in the regulatory landscape. While it’s too early to predict the exact impact, a shift towards a more crypto-friendly environment could further fuel the ETF boom. However, potential regulatory hurdles remain, and the crypto market must navigate these challenges carefully to ensure sustainable growth.

Maintaining a balanced perspective is essential. While the surge in ETF applications is a positive sign, the market’s response will ultimately determine the success of these new ventures. As champions of decentralization and financial freedom, it’s important to stay informed and critical, recognizing both the opportunities and the risks inherent in the crypto space.

Key Questions and Takeaways

• What led to the doubling of crypto ETF applications?

  The resignation of former SEC Chair Gary Gensler.

• How many crypto ETF applications are currently filed with the SEC?

  33 applications have been submitted.

• What types of cryptocurrencies are included in the new ETF filings?

  Bitcoin, Ether, Solana, Litecoin, Dogecoin, and a Trump-themed memecoin.

• What is the predicted number of crypto ETF filings within the next few weeks?

  Bloomberg analyst Eric Balchunas predicts the number could reach 50.

• Which firm filed ETFs based on the TRUMP memecoin, Bonk, and Dogecoin?

  REX Shares filed these ETFs.

• What is the expected performance of the new crypto ETFs according to JPMorgan?

  JPMorgan predicts weaker demand due to smaller market capitalization and lower investor interest in other tokens compared to Bitcoin.

• What was the performance highlight of spot Bitcoin ETFs mentioned?

  They were described as having the greatest launch in ETF history, led by BlackRock’s iShares Bitcoin Trust.

The future of crypto ETFs looks promising, yet it’s important to keep an eye on regulatory developments and market trends. As we champion the cause of financial freedom and effective accelerationism, let’s remain vigilant and continue pushing the boundaries of what’s possible in the world of crypto.