Crypto-ETF: the impact of new regulators and global proliferation

Today, crypto-ETFs are becoming a standard investment tool for institutional and retail investors, providing a convenient way to invest in cryptocurrency assets without directly holding them.

Key trends for crypto-ETFs in 2025

Increase in applications and approvals

In 2024, more than 12 applications were pending with the Securities and Exchange Commission (SEC) from leading issuers, including ProShares, VanEck, Fidelity, and BlackRock. New filings continue to rise in 2025, primarily for asset-linked derivative products such as Ethereum, Litecoin, Solana, and XRP.

According to a report from analyst firm CryptoCompare, the total number of crypto-ETF filings reached 28 in early 2025, a 133% increase from 2024. Of most interest is the launch of the Ethereum ETF, for which approval is expected in the second quarter of 2025.

In addition, applications for Solana and XRP-based derivative ETFs have risen 75% over the past year. BlackRock and Fidelity are leading the race by filing five new products for approval, including ETFs based on cryptocurrency indices.

Cryptocurrency indexes are financial indicators that track the price of a group of cryptocurrency assets, similar to how the S&P 500 tracks the stocks of major U.S. companies. They represent a basket of digital assets grouped according to a particular principle, such as market capitalization, liquidity, or technological features.

Examples of cryptocurrency indices:

• Bloomberg Galaxy Crypto Index (BGCI) — includes Bitcoin, Ethereum, and other major cryptocurrencies.
• Bitwise 10 Crypto Index Fund — tracks the ten largest cryptocurrencies by market capitalization.

Deepening integration with traditional financial institutions

More pension funds, endowments, and insurance companies are incorporating crypto-ETFs into their portfolios. According to a Fidelity Digital Assets report, more than 60% of institutional investors will consider including cryptocurrency ETFs in their holdings in 2025, up from 45% in 2024.

In particular, the largest U.S. pension fund, California Public Employees' Retirement System (CalPERS), announced a 20% increase in crypto-ETF investments.

Insurance companies have also significantly increased interest, with Swiss Re and Allianz confirming the purchase of over $2 billion worth of crypto-ETFs in 2025.

Expansion into Asian and European markets

In 2025, several key financial centers worldwide are developing approaches to regulating crypto-ETFs and digital assets.

Hong Kong, traditionally focused on attracting international investment, has accelerated the process of regulating cryptocurrencies. In 2024, the first wave of crypto-ETFs tied to Bitcoin and Ethereum were launched. In 2025, the government is implementing new KYC and AML regulations to protect investors and increase transparency.

Due to flexible regulation and tax incentives, the UAE continues to be a hub for cryptocurrency companies. In 2025, local financial regulators will actively engage with global crypto-ETF issuers, including BlackRock and Fidelity, attracting major investment into the country.

Singapore will remain one of the most progressive jurisdictions for dealing with digital assets in 2025. Authorities in the city-state are actively supporting the launch of crypto-ETFs and strengthening measures to protect retail investors. Work is also underway to create a national blockchain infrastructure supported by the state.

After leaving the EU, the UK seeks to strengthen its position as a crypto-friendly financial center. In 2025, significant progress was made in creating legislation to provide legal certainty for cryptocurrency funds. The London Stock Exchange is considering listing crypto-ETFs shortly.

The emergence of specialized ETF

In 2025, more than 15 specialized crypto-ETFs, such as funds tracking baskets of DeFi tokens, meta-assets, or gaming assets, have appeared in the market. Among them:

• ProShares Metaverse ETF — a fund investing in leading metaverse tokens such as Decentraland (MANA) and The Sandbox (SAND).
• VanEck DeFi Leaders ETF — focused on top DeFi tokens, including Uniswap (UNI) and Aave (AAVE).
• Fidelity Gaming Crypto ETF — includes gaming blockchain platform assets and tokens related to the NFT economy, such as Immutable X (IMX).

According to CoinShares, the total assets under management in such specialized ETFs exceeded $5 billion in early 2025, indicating growing interest from institutional investors.

Thanks to these trends, crypto-ETFs are no longer a niche product and are becoming part of the global financial landscape.

Impact of the change in SEC leadership and the Trump administration on the ETF market in the U.S.

The change of administration in the White House and personnel reshuffles at the SEC have significantly impacted the U.S. cryptocurrency fund market. With the arrival of Donald Trump in his second term and the appointment of Paul Atkins as head of the SEC, there has been a dramatic change in the vector of regulation of the crypto industry:

• Reduced litigation. Under the Biden administration, the SEC aggressively filed lawsuits against cryptocurrency companies like Ripple and Binance. The new administration is focused on reducing regulatory pressure and finding compromise solutions.
• Accelerated approval of new products. Under Gary Gensler, the SEC delayed approving spot ETFs on Ethereum and other assets. The new course aims to expedite application review.
• Increased institutional confidence. The SEC's loyal policies encourage more institutional investment, including participation from significant Wall Street funds. In addition, according to Block Research, more than 70% of all new investments in crypto-ETFs in 2025 come from institutional investors.
• Hybrid product development. ETFs combining traditional and digital assets are emerging in 2025. One such product is the BlackRock Digital Gold ETF, which includes 50% bitcoin and 50% gold. This fund attracted more than $3 billion in investments in the first quarter of 2025. Fidelity introduced the Ethereum & S&P 500 ETF, which allows investors to diversify assets by allocating 60% to the S&P 500 index and 40% to Ethereum. Analysts note that such hybrid ETFs balance the high returns of crypto-assets and the stability of traditional markets. According to Bloomberg, the volume of assets under management of hybrid ETFs is expected to exceed $10 billion by the end of 2025.

As a result, the U.S. is cementing its leadership in cryptocurrency investments, setting the tone for global regulatory policy.

Conclusion

The global crypto-ETF market is poised to experience rapid growth in 2025. Thanks to the change of administration and the new course of the SEC, the U.S. is becoming the driving force behind the development of this trend, while other countries are actively adapting their laws to attract crypto investors. All this contributes to the fact that crypto-ETFs are becoming an integral part of the modern financial system.