2025 Crypto ETF Year in Review: Wall Street Bids Farewell to Caution, Regulatory Green Light Opens Multi-Asset Era

Author: André Beganski, Decrypt

Translation: Felix, PANews

This year, as the US SEC adopted new regulatory approaches for cryptocurrency products, ETFs have opened multiple doors for the crypto market on Wall Street.

Although asset management firms previously worked hard to launch products tracking spot prices of Bitcoin and Ethereum, with Donald Trump re-inaugurated as president in January, the regulatory environment began to change. Many companies foresee potential market opportunities in 2025.

Regarding Bitcoin, according to Farside Investors data, since its first launch on January 2024, spot Bitcoin ETFs have accumulated a net inflow of $57.7 billion, a 59% increase from $36.2 billion at the beginning of this year. However, capital flows have not been consistently stable.

For example, according to CoinGlass data, on October 6, as Bitcoin approached its all-time high of $126,000, investors poured $1.2 billion into spot Bitcoin ETFs. A few weeks later, on November 11, as Bitcoin fell below $90,000, investors withdrew $900 million from these funds.

Nevertheless, this remains only the second worst day recorded for Bitcoin spot ETFs: in February this year, due to concerns over trade and inflation, Bitcoin prices plummeted, leading to a $1 billion outflow from these products.

On the Ethereum front, according to CoinGlass data, since its first launch in July last year, Ethereum spot ETFs have received a net inflow of $12.6 billion as of December 15. Notably, in August, when Ethereum surged to a new all-time high of nearly $4950, these ETFs gained $1 billion in a single day.

As signs of institutional adoption become more evident, some are focusing on the prospects of more ETFs that could push digital asset prices higher or expand access for new investors. However, others are more interested in ETFs that track multiple cryptocurrencies simultaneously, believing such products are suitable for institutional investors.

Establishing Universal Standards

In September, the US SEC approved general listing standards for commodity trust shares, aiming to respond to mounting market expectations over recent months.

The SEC’s desk is piled high with ETF applications covering a wide range of digital assets. Whether these applications will be approved depends on a question long avoided by the previous leadership: under what circumstances should digital assets be considered commodities?

With the new standards, the SEC no longer needs to decide on a case-by-case basis whether various cryptocurrencies—from Dogecoin to meme coins like President meme coin—meet the criteria. Instead, it has clearly outlined unified conditions that make digital assets eligible for listing as commodity trust funds.

Key factors include: the digital assets covered by the ETF must be traded on regulated markets and have at least six months of futures trading history, or support must be provided for ETFs with significant risk exposure.

Bloomberg senior ETF analyst Eric Balchunas said in an interview in September that this means at least a dozen cryptocurrencies could immediately “meet listing conditions.” In his view, this move aligns with expectations.

Bloomberg senior research analyst James Seyffart recently stated on X that the approval of universal listing standards is expected to significantly increase the number of products available to investors. However, asset management firms are still awaiting approval results for at least 126 ETFs.

Most of these applications focus on tokens from emerging decentralized finance projects (such as Hyperliquid) and some relatively new meme coins, like Mog.

Related: SEC new rules open the door for crypto ETFs, with the top 10 spot ETFs expected to launch?

XRP and Solana

Following Bitcoin and Ethereum, US investors can now invest through ETFs tracking the spot prices of XRP and Solana, along with various other digital asset-related products.

As the fifth and seventh largest digital assets by market cap, XRP and Solana faced regulatory pressures during the Biden administration. However, as they become the underlying assets for more products, these pressures are gradually easing.

Last year, the launch of spot Bitcoin ETFs sparked a demand surge and drove Bitcoin prices to new highs. Although this effect was not fully replicated in smaller market cap cryptocurrencies, ETFs focused on XRP and Solana still attracted significant investor interest.

Juan Leon, senior investment strategist at Bitwise, said, “I think ETFs may not have had the impact on prices that many expected, but in terms of product uniqueness, they have been very successful and have demonstrated that investors are interested in assets beyond Bitcoin and Ethereum.”

Juan Leon believes that the timing of the Solana and XRP ETFs’ launch in November was “less than ideal,” as macroeconomic conditions in recent months have led to declines in digital asset prices.

Nevertheless, capital inflow data remains impressive. According to CoinGlass, as of December 15, the spot Solana ETF has received a net inflow of $92 million since its launch; the spot XRP ETF launched in the same month has accumulated approximately $883 million in net inflows.

The launch of Solana ETFs is notable for another reason: they are among the first ETFs to share part of the staking rewards with investors. This development was facilitated by new guidelines issued last month by the US Treasury Department and the IRS.

While BlackRock, the world’s largest asset manager, has yet to expand its crypto-related products to more assets, Leon pointed out that the XRP and Solana communities may not need these products.

“Based on how ETFs are currently operating, the participation, strength, and scale of these communities far exceed many people’s expectations. I see this as a good sign for the development of both ecosystems in 2026.”

For example, according to SoSoValue data, as of December 15, the net inflow into Dogecoin spot ETFs was $2 million.

Index Wars?

Gerry O’Shea, global market analysis director at Hashdex Asset Management, said that in 2025, the main holders of spot cryptocurrency ETFs are likely to remain individual investors and hedge funds, but this trend is expected to undergo significant change soon.

Gerry O’Shea noted that many advisors and professional investors are still conducting due diligence on ETFs tracking cryptocurrencies, but he believes these institutions will soon seriously consider allocating to this asset class.

Meanwhile, Vanguard announced earlier this month that it will allow its 50 million clients to trade some spot crypto ETFs on its brokerage platform. At the same time, US banks have approved providing moderate crypto allocations to private wealth clients starting next year.

About a year ago, the regulatory environment was still uncertain, and many institutions were not yet ready to enter this space. Now, the focus has shifted from whether to get involved to how to do so.

In this context, Gerry O’Shea believes that ETFs tracking digital asset indices will play a more important role in discussions next year. He said many professional investors prefer products with dynamically adjusting holdings over time, which makes them feel more comfortable.

Gerry O’Shea explained, “They can invest in index ETFs to broadly access market growth potential without needing to understand all the details. They don’t have to be experts on every asset.”

For example, in February this year, Hashdex launched the first US spot ETF tracking multiple digital assets: Hashdex Nasdaq Crypto Index ETF. This ETF is based on the Nasdaq Crypto Index and holds Cardano, Chainlink, Stellar, and other mainstream cryptocurrencies.

Additionally, firms like Franklin Templeton, Grayscale, Bitwise, 21Shares, and CoinShares have also launched similar products, some using derivatives to gain exposure to digital assets. According to ETF Trends data, this series of index ETFs offers investors exposure to 19 different digital assets.

On the institutional side, although some US pension funds have purchased Bitcoin spot ETFs, the Wisconsin Investment Board liquidated about $300 million in holdings around February. This move was disclosed through large institutional investors’ quarterly 13F filings.

Meanwhile, Middle Eastern and academic institutions are more actively allocating. For example, Al Warda Investments disclosed holding a $500 million position in BlackRock’s Bitcoin spot ETF in November. This investment firm is affiliated with the Abu Dhabi Investment Council (a subsidiary of Mubadala Investment Company), which is Abu Dhabi’s sovereign wealth fund.

Mubadala Investment Company itself disclosed holding a position in BlackRock’s product in February, valued at $567 million according to its latest 13F filing. Around the same time, Harvard University’s endowment fund held $433 million in BlackRock ETFs. Brown University and Emory University also disclosed holdings in Bitcoin spot ETFs this year, becoming some of the earliest institutional adopters of this asset.

Analysts generally believe that this shift among institutional investors could reduce Bitcoin’s volatility and narrow its drawdowns.

Gerry O’Shea commented on expanding investment fundamentals: “While the change isn’t dramatic, it’s definitely worth noting. This shift from retail to institutional investors is very beneficial for the long-term sustainability of assets like Bitcoin, as these institutional investors tend to have a longer investment horizon.”

Related: Rooted in Ruins: The Extreme Segmentation of the Altcoin ETF Market