DeutschThe tide has turned. Since Donald Trump has been in the White House, the US crypto industry is no longer moving at a snail’s pace, but in sprint mode. Hardly a day goes by without a new ETF entering American exchanges. First Bitcoin, then Ether – and now products are flooding the trading venues in droves. The industry seems to have held its breath for years and can now finally breathe again. According to a report by Bloomberg and statements from ETF expert Eric Balchunas, this rush could just be the beginning.
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Balchunas, one of the most prominent voices in the ETF sector, was unusually clear to Bloomberg. He presented a table of funds already launched and those about to launch – and immediately followed up: “In the next six days, five more crypto ETFs will be added.” The expert even expects the number to exceed 100 in the next six months. A statement that immediately caused a stir in the community.
Crypto ETF Explosion: are 100 New Funds Coming Soon?
Indeed, the momentum of recent weeks has surprised even seasoned market observers. Grayscale recently launched spot ETFs for XRP and Dogecoin, while Franklin Templeton also listed an XRP ETF. It almost seems as if Wall Street is just discovering how much demand there is in the crypto industry – or how much pressure builds up if you miss out.
However, the trigger for this sudden ETF avalanche lies less in euphoria than in a regulatory shift. Already in September, the US Securities and Exchange Commission (SEC) had approved the listing standards for spot-based crypto ETFs on the Nasdaq, NYSE Arca, and Cboe BZX exchanges. An inconspicuous, but momentous decision: Instead of having to review each product individually, providers can now list their funds much faster – provided they meet the general conditions. A boost for the ETF market.
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For the industry, this new landscape presents both opportunities and risks. On the one hand, the formally regulated access provides planning certainty. On the other hand, too rapid an expansion could flood the market with funds that later achieve little volume and disappear in the thicket of products. However, there is currently little to suggest that the trend is slowing down. Balchunas’ forecast is almost considered cautious in the industry.
Lasting Phenomenon or Overheating for the Industry?
The broader political situation also plays a role. During the election campaign, Trump had repeatedly signaled that the government intended to hinder innovation in the crypto and financial sectors less. The fact that acceleration is now actually becoming visible should please proponents of the industry – even if many of the new products ultimately remain classic financial instruments, packaged with a digital twist.
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The next few months will show whether the ETF boom becomes a lasting phenomenon or whether the industry is heading for overheating. But one thing is already clear: The US crypto industry is experiencing its fastest expansion to date – and an end to the ETF flood is not in sight. Whether the markets absorb this flood or risk being overwhelmed by it, will only become clear when the first 100 products are actually traded. (mck)
