Waiting for Atkins

Crypto ETFs have become one of the most pivotal on-ramps for bridging participation in mainstream assets with participation in cryptoassets - and for filings, at least, the floodgates have well and truly opened.

It's concomitant with what is widely anticipated to be an upcoming regulatory reset, under the new crypto-constructive administration,

In common with several other developments in the space over the last month though, not everyone agrees the broader tenor of filings is actually positive.

The perceived drop in 'quality' might be inevitable as a function of the increased gradient of paperwork alone.

Early in the month, our article linked below tallied what we believed to be an accurate assessment of live applications to list crypto funds.

Here’s how long we may wait for the new wave of US crypto ETFs

Will the SEC really soften its hardline stance on crypto ETFs as quickly as applicants expect?

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It wasn't much of a bold prediction to write in that piece:

Now, with Gary Gensler set to depart as SEC chair in late January – most likely to be replaced by a known crypto proponent, former commissioner and staffer Paul Atkins – investment firms will almost certainly become even more confident of chances of regulatory approval for a wider array of crypto ETF assets beyond Bitcoin and Ether.

The list therein remains fairly current as far as it goes. But there have been several additions since.

The most eye-catching are probably the spate of filings proposing to package meme coins in the ETF wrapper.

Again, it's a matter of perspective, but some might say these have gone from the just about sublime to the frankly ridiculous.

Although Dogecoin (DOGE) is nowadays furnished with objectively more utility and governance than many peer meme tokens, if filings to list DOGE ETFs are now seen as some of the more credible to have emerged in recent weeks, that's quite indicative.

For example, among a myriad of filings en masse, REXShares and Ospreys Funds (which have an approximately $7.6 billion combined AuM) posted bids to list funds including a BONK ETF and, most notoriously, an ETF investing in the "hottest digital meme on earth", $Trump. Another firm, Tuttle Capital also filed for a TRUMP ETF, among other funds.

The latter then abruptly withdrew many of these filings, apparently in quick succession.

Where could all this end?

Clearly, the lack of a permanent SEC chair, though reasonable so early in Trump's administration following the former's resignation, is part of the issue.

We explored prospects surrounding the administration's nominee, Paul Atkins, in the article mentioned above.

It's not necessarily material that no confirmation hearings have been scheduled for Atkins as yet. Though it does potentially prolong the spell of slightly surreal crypto filings that will emerge for a while longer.

Since this isn't the place for a comprehensive collation of crypto filings news, two of the best options to remain apprised with that theme are James Seyffart and Eric Balchunas.

Meanwhile, though superseded by sheer volume of filings, our early-January post contains a fair assessment of the key regulatory points to watch, while we wait for the SEC's new direction to crystallize.