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The race to capture the crypto market’s attention is heating up, with ETF issuers finding increasingly creative — and riskier — ways to attract investors. As 2024 closed, a slew of new ETF filings hit the US Securities and Exchange Commission (SEC), showcasing how Wall Street is looking to ride the crypto wave into 2025.
What’s New in Crypto ETFs?
Among the recent proposals is an innovative ETF from ProShares that would denominate the S&P 500’s returns in Bitcoin. Strive Asset Management and REX Shares aim to offer exposure to convertible bonds from companies funding Bitcoin purchases. Meanwhile, Volatility Shares is pushing the envelope with plans for inverse and leveraged Solana funds, as well as futures-based funds tracking the sixth-largest digital token.
“This is the continued evolution of launches to incorporate crypto strategies into ETFs. We’ll see a lot of these in 2025,” said Bloomberg Intelligence’s Athanasios Psarofagis.Indeed, these filings could lead to over a dozen new crypto-focused ETFs debuting in 2025, just a year after the first US Bitcoin ETFs began trading.
The Year That Set the Stage
2024 was a banner year for crypto. Bitcoin surged over 120%, breaking the $100,000 mark. A large part of this rally came from the market’s anticipation of President-elect Donald Trump’s pro-crypto policies. BlackRock’s flagship Bitcoin ETF alone saw inflows exceeding $37 billion in 2024, making it the third-largest ETF by annual inflows, according to Bloomberg data.
Big players like MicroStrategy also capitalized on the bull market. Michael Saylor’s company doubled down on its Bitcoin acquisition strategy, funding purchases through convertible bonds and equity sales. Now, ETF issuers are stepping in to give retail investors exposure to similar strategies.
Convertible Bonds: The New Frontier?
REX Shares’ proposed ETF plans to invest heavily in convertible bonds issued by Bitcoin-holding companies like MicroStrategy. Similarly, Strive Asset Management intends to launch a fund focusing on derivatives tied to convertible securities. This gives investors indirect exposure to companies leveraging Bitcoin as a reserve asset.
“This is the evolution of the crypto ETF spectrum: futures-based, spot, thematic, and now convertibles,” said Todd Sohn, ETF strategist at Strategas.Solana Joins the ETF Party
Volatility Shares isn’t stopping at Bitcoin. They’re betting big on Solana with plans for inverse and leveraged ETFs, as well as futures-based products tracking the blockchain. This diversification highlights how ETFs are moving beyond Bitcoin to include emerging crypto assets.
What’s Next for Crypto ETFs?
The crypto craze shows no signs of slowing down in 2025. With creative ETF products hitting the market, retail and institutional investors alike will have more ways to participate. However, these products also come with increased risks, especially given the volatile nature of cryptocurrencies.
As Wall Street gets more imaginative, one thing is clear: the crypto ETF revolution is just beginning. Will you join the ride or sit on the sidelines?
Would you invest in these next-gen crypto ETFs? Let us know in the comments!
ETFs Go Crypto: 2025 Could See Dozens of New Crypto-Focused Funds was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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