Coin WorldThursday, Jul 3, 2025 3:22 am ET

3min read

Crypto ETFs in the US are experiencing a surge in market momentum, driven by several key developments. The US Securities and Exchange Commission (SEC) has initiated steps to establish comprehensive listing standards for crypto ETFs, which could significantly streamline the approval process and unlock new opportunities for crypto investments. This move is seen as a potential game-changer, as it promises to simplify the complex journey that crypto ETFs have faced in the past.

The momentum is further bolstered by the growing interest in Ethereum ETFs. In June, Ethereum ETFs recorded $1.17 billion in inflows, a trend that analysts predict will continue into the second half of the year. This bullish outlook is supported by the increasing demand from institutional investors, who are continuing to buy despite short-term pressure.

Bitcoin, the largest cryptocurrency by market capitalization, has also seen significant activity. US spot Bitcoin ETF issuers are consistently absorbing BTC, which has helped to stabilize the market. The once-violent market movements associated with the four-year Bitcoin cycle appear to have been muted by dollar-cost averaging strategies employed by large investors. This trend suggests that the market is becoming more resilient to short-term fluctuations.

However, there are potential headwinds on the horizon. Tariff uncertainty, for instance, has a tendency to suppress market momentum, which could pose challenges for Bitcoin in the coming weeks. Despite this, the overall sentiment remains positive, with analysts and investors alike optimistic about the future of crypto ETFs in the US.

The SEC's proposed generic standards for crypto ETFs are a significant development that could pave the way for more widespread adoption. By establishing clear guidelines, the SEC aims to provide a more predictable regulatory environment, which is crucial for attracting institutional investment. This, in turn, could lead to increased liquidity and stability in the crypto market.

In recent times, significant developments in US crypto markets, particularly concerning cryptocurrency-backed exchange-traded funds (ETFs) and institutional interest, have captured attention. The newly launched REX-Osprey Solana + Staking ETF (SSK) stands out as the first cryptocurrency staking ETF listed in the US, garnering considerable interest. The fund closed its first trading day with a transaction volume of approximately $33 million, which various analytics firms have highlighted as being above average.

The REX-Osprey Solana + Staking ETF offers investors indirect access to Solana and staking rewards without requiring technical knowledge. Although the ETF’s trading volume was lower compared to the initial volumes seen in Bitcoin and Ethereum -based ETFs, market analysts observed a stronger momentum than witnessed in the launches of Solana and XRP futures ETFs. The cryptocurrency staking model behind this ETF’s launch was enabled following the US Securities and Exchange Commission’s (SEC) ruling that staking activities do not breach current regulations.

While there is currently no Ethereum staking ETF in the US, such products are available to investors in places like Canada. For example, in Canada, 3iQ continues to provide an Ethereum staking ETF, while in Hong Kong, diverse staking ETFs appear under regulatory frameworks.

BlackRock, one of the world’s largest asset management companies, has seen its iShares Bitcoin ETF (IBIT) surpass the revenue of its flagship S&P 500 ETF (IVV) in a short period. With assets under management totaling $75 billion, IBIT is estimated to generate an annual income of $187.2 million at its 0.25% management fee rate. Despite the S&P 500 ETF having significantly higher fund assets, the much lower management fee rate of 0.03% has allowed IBIT’s total revenue to exceed that of IVV. Market experts view this as a reflection of the growing institutional demand for cryptocurrencies.

During this period, the cryptocurrency market has generally experienced a rise. Bitcoin has surged by 3.6% in the last 24 hours, surpassing $109,000, supported by trading volume and positive global developments. While the US-Vietnam trade agreement positively influenced market sentiment, the crypto market remains vibrant despite tensions in the Middle East. Ethereum increased by 8.6%, reaching $2,608. Influenced by high trading volume and institutional interest, ETH has settled into new support and resistance levels.

In the crypto market, notable events include Ripple’s federal banking trust application in the US, Celsius’ lawsuit against Tether, and discussions on gaming projects within the industry have marked recent highlights. Developments impacting both crypto and traditional financial markets are transforming the landscape into a more appealing and multidimensional one. Investors are advised to consider risks and opportunities and to stay updated with evolving regulations. As crypto-based ETFs have the potential to deepen the market and attract diverse investor profiles, it is likely they will draw even more interest with new products in the near future.