The U.S. Securities and Exchange Commission (SEC) is currently reviewing a significant wave of cryptocurrency-based exchange-traded funds (ETFs), with 36 applications pending as of late October 2025. This surge reflects growing institutional interest and market maturity in the digital asset space, particularly around Bitcoin and Ethereum exposure through regulated financial products.
According to data from Bloomberg Intelligence analyst James Seyffart, the SEC has already approved four Bitcoin-related ETFs to date. Among them, the most notable is the Ark 21 Shares Bitcoin ETF, a collaboration between 21 Shares and ARK Invest. This product has gained attention for its innovative structure and strong backing from Cathie Wood’s investment firm, signaling increasing confidence from traditional finance players in crypto assets.
👉 Discover how ETF approvals could reshape crypto investing in 2025.
The Growing Pipeline of Crypto ETF Applications
The latest filings include two new submissions from AXS Investment on October 27: the AXS Bitcoin Strategy ETF and the AXS Short Bitcoin Strategy ETF. These reflect a broader trend toward diverse investment strategies, including both long and short exposure to Bitcoin performance.
While most of the pending ETFs aim to gain direct exposure to BTC via spot purchases, futures contracts, or derivatives, others are adopting hybrid models. These mixed-asset funds allocate only a portion of their portfolio to Bitcoin, with the remainder invested in U.S. equities or blockchain-focused stocks—such as companies involved in mining, infrastructure, or decentralized applications.
This diversified approach may appeal to risk-averse investors seeking indirect crypto exposure within a more balanced portfolio framework. It also aligns with regulatory expectations for risk management and asset diversification.
Ethereum ETFs Enter the Spotlight
Beyond Bitcoin, there is growing momentum behind Ethereum-based financial products. Currently, three pending applications specifically target ETH performance:
- VanEck Ethereum Trust
- WisdomTree Ethereum Trust
- Kryptoin Ethereum Trust
These filings indicate that market participants are preparing for a potential green light on Ethereum ETFs, which could mirror the impact seen after Bitcoin ETF approvals. With Ethereum’s transition to proof-of-stake and its central role in decentralized finance (DeFi) and smart contracts, demand for regulated ETH investment vehicles continues to rise.
Analysts suggest that if the SEC begins approving Ethereum spot ETFs, it could unlock billions in institutional capital and further legitimize the broader altcoin ecosystem.
👉 See how Ethereum’s evolution is fueling next-gen financial products.
Why SEC Approval Matters
The SEC’s stance on cryptocurrency ETFs has historically been cautious, citing concerns over market manipulation, liquidity, custody solutions, and investor protection. However, the approval of multiple Bitcoin ETFs marks a turning point—demonstrating that regulated crypto products can meet stringent compliance standards.
Each new application undergoes rigorous evaluation, including:
- Market surveillance agreements with major exchanges
- Transparent custodial arrangements
- Clear valuation methodologies
- Risk disclosure frameworks
As the regulatory framework evolves, more asset managers are positioning themselves to enter the market quickly once approvals are granted.
Key Trends Shaping the Crypto ETF Landscape
Several factors are driving the surge in ETF applications:
- Institutional Demand: Traditional financial institutions are seeking compliant ways to gain crypto exposure for their clients.
- Improved Infrastructure: Advances in custody, trading platforms, and price verification have strengthened the case for regulatory approval.
- Investor Education: Growing public understanding of blockchain technology reduces perceived risks.
- Global Precedents: Countries like Canada and Brazil have successfully launched crypto ETFs, providing models for U.S. regulators.
These developments collectively increase the likelihood of broader approvals in the near future.
Frequently Asked Questions (FAQ)
Q: What is a cryptocurrency ETF?
A: A cryptocurrency exchange-traded fund (ETF) allows investors to gain exposure to digital assets like Bitcoin or Ethereum without directly owning them. It trades on traditional stock exchanges and offers diversification, liquidity, and regulatory oversight.
Q: How many Bitcoin ETFs has the SEC approved so far?
A: As of 2025, the SEC has approved four Bitcoin-related ETFs, including the Ark 21 Shares Bitcoin ETF.
Q: Are there any Ethereum spot ETFs approved in the U.S.?
A: No Ethereum spot ETFs have been approved yet. However, three major applications—VanEck, WisdomTree, and Kryptoin—are under review, signaling strong market anticipation.
Q: What's the difference between spot and futures-based crypto ETFs?
A: Spot ETFs hold the actual cryptocurrency, offering direct price exposure. Futures-based ETFs use derivatives contracts, which can introduce tracking errors and contango risks but may be easier to regulate initially.
Q: Why does the SEC delay crypto ETF approvals?
A: The SEC prioritizes investor protection and evaluates risks such as market manipulation, volatility, custody security, and transparency before granting approval.
Q: Can I invest in crypto ETFs today?
A: Yes—approved Bitcoin ETFs are available through major brokerage platforms. For other cryptocurrencies like Ethereum, investors must wait for regulatory decisions or consider alternative exposure methods.
Looking Ahead: What’s Next for Crypto ETFs?
With 36 applications in the pipeline, the next 12–18 months could be transformative for digital asset adoption. If the SEC expands approvals beyond Bitcoin to include Ethereum and potentially other large-cap cryptocurrencies, it would mark a major milestone in financial innovation.
Moreover, successful ETF launches could lead to lower fees, improved liquidity, and integration into retirement accounts and robo-advisors—bringing crypto closer to mainstream financial planning.
👉 Stay ahead of the next wave of crypto financial products—explore your options now.
Final Thoughts
The growing number of pending cryptocurrency ETF applications underscores a pivotal shift in how digital assets are perceived by regulators and traditional finance. While challenges remain, the trend points toward greater acceptance and accessibility.
For investors, staying informed about regulatory developments and understanding the differences between spot, futures, and hybrid ETF structures will be key to making sound decisions. As the landscape evolves, those who understand the fundamentals will be best positioned to benefit from this new era of asset management.
Whether you're interested in Bitcoin's store-of-value narrative or Ethereum's role in powering decentralized applications, the expansion of regulated investment vehicles opens new doors—with stronger protections and broader access than ever before.