SEC Chairman Gary Gensler will be stepping down tomorrow. How has this already affected the cryptocurrency market?
The 20th of January will not only see the inauguration of Donald Trump, but also the firing of the chairman of the Securities Commission. Gary Gensler is remembered as a clear enemy of the crypto industry, who created uncertainty with the regulation of coins and fought the popularisation of digital assets. Fortunately, he will leave the SEC tomorrow and will be replaced by someone with an adequate attitude towards the crypto sphere. And this is already having an impact on the latter.
What cryptocurrency ETFs to buy in 2025?
Investment funds are actively applying to launch new ETFs based on cryptocurrencies. And since this is happening right before Gensler’s firing, companies are clearly counting on the approval of documents given the change in regulatory leadership.
Approval of spot cryptocurrency ETFs in the U.S.
At least four applications for cryptocurrency ETFs were filed as of Friday’s close. Cointelegraph journalists believe that what is happening is specifically related to the impending firing of the SEC chairman and expectations of the launch of more adequate regulation of digital assets.
For example, the ProShares fund, which is known for launching the first Bitcoin futures ETF in the US under the ticker BITO in November 2021, has applied to launch a Solana Futures ETF product. Accordingly, the new product, if introduced, will allow investors to connect with the SOL cryptocurrency through futures contracts rather than direct ownership as is the case with spot exchange traded funds.
Bloomberg analyst James Seyffarth commented on the developments. Here’s his rejoinder.
It’s interesting, because there are no futures on the CME exchange yet. And I’m not sure if SOL futures on Coinbase are large and liquid enough.
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On 17 January, CoinShares, formerly known as Valkyrie, filed to launch the CoinShares Digital Asset ETF, which will track the company’s proprietary index called Compass Crypto Market.
ProShares has filed papers to launch XRP-based credit, inverse and futures exchange traded funds. Earlier, giants in the form of Bitwise, Canary Capital, 21Shares and WisdomTree did the same.
Previous attempts to get spot Bitcoin-ETFs approved
It’s also worth remembering the example of asset manager Tidal DeFi, which operates with a focus on the decentralised finance sphere. The company has applied to create the Oasis Capital Digital Asset Debt Strategy ETF (DADS). The latter will invest in debt instruments for companies in the crypto industry, including miners and payment platforms.
This week, representatives of VanEck, the largest investment fund, made a new application. The giant wants to launch a tool called “Onchain Economy” for investing in crypto-focused companies. We are talking about developers, miners, exchanges, creators of infrastructure solutions, payment operators and other representatives of the industry.
Nate Geraci, head of The ETF Store, commented on the importance of the situation.
People are going to laugh at some of these applications to launch cryptocurrency ETFs. I understand that. However, here’s what they are missing the point.
Put aside the merits of individual coins. The bottom line is that traditional finance as represented by issuers, market makers, custodians and others is becoming more and more deeply integrated with decentralised finance. ETFs are the bridge between traditional finance and the DeFi sphere. That is, it is the first step towards full tokenisation.
Earlier, experts at trading platform Wintermute said that they expect Dogecoin-based ETFs to appear in 2025. Something like this would illustrate the importance of investors paying attention to a certain trend in the industry.
Which states want to buy bitcoin?
And while investment funds are preparing to launch new cryptocurrency ETFs, Wyoming has become the next US state to consider the prospect of direct investment in Bitcoin. In doing so, it has joined a number of other states looking to get in touch with the first cryptocurrency. So far, Texas has come closest to realising this goal.
The event was commented on by Senator Cynthia Lummis. Recall, in the summer of 2024 it was she who presented the bill, which involves the purchase of the U.S. government of a million bitcoins over five years. Moreover, in the end, the crypto should be on wallets for at least twenty years.
Wyoming has taken the first bold step to create a strategic reserve in bitcoins. This progressive approach will benefit our state by providing an opportunity to lead the way in financial innovation.
U.S. Senator Cynthia Lummis
Under the bill, Wyoming’s treasurer would be able to use the general fund, the state’s permanent mineral trust fund and permanent land trust fund to invest capital in Bitcoin. The limit for investment would be a level of 3 percent of the funds in each listed fund.
Gary Gensler's resignation is yet another component to continue the current bullrun in crypto. Still, new SEC head Paul Atkins is good for the coin market, plus the Trump administration is considering ending litigation against blockchain companies that haven't engaged in fraud. Again, 2025 promises to be a very pleasant year for crypto investors and traders.
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