This wave of applications spans a wide spectrum of digital assets—from established altcoins like Solana, XRP, and Litecoin to meme coins and even novelty derivatives like “2x Melania.” Analysts see this as a potentially transformative year for crypto finance, though success is far from guaranteed. While institutional interest is surging, ETF approval doesn't ensure adoption. Experts warn that only a few ETFs will attract any major inflows, with derivative-based products likely to have the most institutional appeal.
ARK Invest is already moving ahead, adding exposure to staked Solana through Canadian-listed ETFs, thanks to the increasing demand for Solana inclusion. Meanwhile, Canary Capital also recently made headlines by filing for a TRX ETF with built-in staking.
SEC Faces Flood of Crypto ETF Proposals
More than 70 cryptocurrency exchange-traded funds (ETFs) are expected to undergo review by the US Securities and Exchange Commission (SEC) this year, in what analysts are calling a potentially transformative moment for digital assets. Bloomberg’s senior ETF analyst Eric Balchunas shared that the proposed products span a broad range of holdings, from large-cap altcoins like XRP, Litecoin, and Solana to meme coins like Dogecoin, and even niche derivatives products themed around pop culture and personalities like “2x Melania.” Balchunas described the scope as “everything in between,” and also predicted a chaotic yet pivotal year ahead for crypto financial products.
The wave of filings aligns with a surge in institutional interest in cryptocurrencies. A joint report by Coinbase and EY-Parthenon that was released in March revealed that more than 80% of institutions intend to boost their crypto allocations in 2025.
(Source: Coinbase)
While optimism is high, analysts are still quick to point out that ETF approval alone is no guarantee of success. Balchunas compared the listing of a crypto ETF to a band getting their songs onto streaming platforms. Overall, it increases visibility but doesn’t ensure widespread traction or usage.
Even with the rising enthusiasm, expectations are tempered for more obscure or speculative assets. Katalin Tischhauser, the head of research at Sygnum Bank, projected that altcoin ETFs may only attract several hundred million to a billion dollars in cumulative inflows. This is a far cry from the more than $100 billion that flowed into spot Bitcoin ETFs last year.
Despite this, derivative-based products may have stronger appeal among institutions. Funds that use options or structured exposure to Bitcoin and Ethereum are seen as unlocking sophisticated strategies, which could potentially trigger explosive price movements. This is according to Bitwise’s head of alpha strategies, Jeff Park.
For now, 2025 is shaping up to be a critical year in the integration of crypto assets into mainstream investment vehicles.
ARK Invest Adds Staked Solana to US ETFs
Companies are already working to make sure their ETF offerings stand out. ARK Invest recently added exposure to staked Solana to the portfolios of two of its exchange-traded funds. This was the first time US-listed ETFs included spot SOL in their holdings.
According to a client email, ARK’s Next Generation Internet ETF (ARKW) and Fintech Innovation ETF (ARKF) now hold shares of 3iQ’s Solana Staking ETF (SOLQ), which is a Canadian-listed product that invests in staked Solana. The inclusion is part of ARK’s strategy to offer investors exposure to emerging technologies, combining crypto assets like Solana with stocks from companies like Coinbase, Block, and Robinhood.
ARKW holdings
While the SEC has not yet approved any spot Solana ETFs, the move signals that there is growing interest in integrating Solana into institutional portfolios. In contrast, previous ETF products offering Solana exposure in the US have relied on derivatives, like those launched by Volatility Shares in March. The recent approval of Solana futures trading on the Chicago Mercantile Exchange further fueled speculation that a US-approved spot Solana ETF may be on the horizon.
Meanwhile, Canada is still very much in the lead in this area. Just last week, 3iQ launched its Solana ETF in Canada after receiving the green light from the Ontario Securities Commission. Solana remains the second-largest smart contract blockchain by total value locked, with over $7 billion secured in its ecosystem, compared to Ethereum’s $45 billion. The SEC approved spot Ether ETFs for US trading in July of 2024, which could indicate a possible path forward for similar Solana products.
Blockchains by TVL (Source: DeFiLlama)
ARK has been very active in the crypto ETF space, and even partnered with 21Shares to launch the ARK 21Shares Bitcoin ETF (ARKB). This ETF now manages close to $4 billion in assets. While the firm also collaborated with 21Shares on an Ether ETF, the partnership was dissolved shortly before the fund launched under the 21Shares brand.
Canary Capital Files for First TRX ETF
United States asset manager Canary Capital also recently filed for a new ETF that will hold the native token of the Tron blockchain, TRX. The proposed ETF aims to hold spot TRX while also staking a portion of the tokens to generate additional yield, according to regulatory filings. TRX currently has a market cap of over $23 billion, and staking the token provides an estimated annual yield of around 4.5%, based on data from Stakingrewards.com.
TRX price action over the past year (Source: CoinMarketCap)
This filing is part of the broader wave of submissions seeking approval for ETFs focused on alternative cryptocurrencies, also known as altcoins. However, Canary’s proposal stands out for requesting staking privileges in its initial application. In contrast, US ETFs based on Ethereum typically sought staking permissions only after launching the spot asset fund and are still awaiting regulatory responses.
Tron is a proof-of-stake blockchain that was developed by Justin Sun, who also owns Rainberry, the company behind BitTorrent. Sun is currently engaged in some serious legal proceedings with the SEC, which sued him in 2023 for allegedly manipulating the prices of TRX and BTT. In February, both parties agreed to pause the case for settlement discussions.
Canary’s filing is part of a growing trend as US regulators have acknowledged dozens of crypto ETF proposals since early 2024, after President Trump’s return to office. These filings span a wide range of tokens, from major layer-1 networks like Solana to highly speculative meme coins. Canary itself submitted ETF proposals for a variety of tokens, including Litecoin, XRP, Hedera, Axelar, Pengu, and Sui.
Despite the growing number of applications, some analysts are still very skeptical about their potential success. Crypto researcher Alex Krüger warned that most altcoin ETFs will likely fail to attract meaningful assets under management and may ultimately become a financial burden for the issuers.
