New craze for crypto ETFs: Latest application progress and outlook for 2025

Author: Spirit, Golden Finance

Foreword

With the increasing maturity of the cryptocurrency market, exchange-traded funds (ETFs) have become an important bridge connecting traditional finance and digital assets. This article compiles the latest progress in crypto ETF application, covering in detail key information such as application institutions, feasibility analysis, target asset introduction, token price performance in the past month, and SEC review and reply period, providing readers with comprehensive market insights and future prospects.

1. Overview of the latest application of crypto ETF progress

As of February 19, 2025, the crypto ETF market continued to heat up, especially after the approval of Bitcoin and Ethereum spot ETFs, more institutions have submitted applications for other cryptocurrencies. Here are the main progress:

ADA (Cardano) Spot ETF

Applicant/Institution: Grayscale Investments

• Progress: Grayscale submitted the world's first ADA Spot ETF application to the U.S. SEC in the second week of February 2025. After the news was announced, ADA prices rose by 16%. The application has now entered the initial SEC review phase.
• Final Reply and Review Period: The SEC usually has a 45-day preliminary reply period after receiving the application (as of approximately March 25, 2025), which can be extended to 90 days (as of approximately May 10, 2025).

XRP Spot ETF

Applicants/Institutions: Bitwise Asset Management, Grayscale, 21Shares, WisdomTree, Canary Capital

Progress: Bitwise officially submitted an XRP Spot ETF application through the Cboe BZX Exchange in February 2025, and the SEC confirmed receipt on February 18. Other institutions such as Grayscale, 21Shares also submitted similar applications from the end of 2024 to the beginning of 2025, and are currently under review.
• Final Reply and Review Period: Taking Bitwise as an example, the SEC needs to provide a preliminary reply within 45 days (approximately April 4, 2025), which can be extended to 90 days (approximately May 19, 2025).
• SOL (Solana) Spot ETF

• Applicants/Institutions: VanEck, Grayscale, Bitwise, 21Shares, Canary Capital
• Progress: Multiple institutions submitted SOL spot ETF applications from the end of 2024 to the beginning of 2025, among which Grayscale and VanEck's applications have entered the 21-day public comment period.
• Finally reply and review period: Take Grayscale as an example. After the comment period, the SEC has 45 days of preliminary response (about the end of March 2025), which can be extended to 90 days (about the mid-May 2025).

LTC (Litecoin) Spot ETF

Applicants/Institutions: Grayscale, Canary Capital, Nasdaq (representing unpublic issuers)
• Progress: Nasdaq submitted an LTC Spot ETF application on January 29, 2025, and the SEC has accepted and entered a 45-day preliminary review (as of approximately March 15, 2025). Applications from Grayscale and Canary Capital are also being promoted simultaneously.
• Final Reply and Review Period: The preliminary reply can be extended to 90 days as of March 15, 2025 (approximately April 29, 2025).

DOGE (Dogecoin) Spot ETF

Applicants/Institutions: NYSE Arca (representing an unpublic issuer), Grayscale Investments, Bitwise Asset Management, 21Shares, WisdomTree, Canary Capital

• Progress: The DOGE ETF application submitted in early 2025 is still in its early stages, and the SEC has not disclosed more details yet and is progressing slowly.
• Final reply and review period: An estimated 45-day preliminary reply period (approximately mid-March 2025) can be extended to 90 days (approximately end of April 2025).
• 2. Through feasibility analysis

The feasibility of encrypted ETFs is affected by regulation, market demand, legal risks and technological maturity:

Regulatory Environment

• Positive Factors: The new SEC leadership (Paul Atkins) is more crypto-friendly, with expectations of loose policy in 2025. The success of Bitcoin and Ethereum ETFs sets precedent for other currencies.
• Challenges: SOL and XRP were once questioned by the SEC as "securities" and need to clarify their legal status; ADA and LTC are more likely to be approved for decentralization; DOGE faces greater uncertainty due to meme attributes.
• Possibility of approval (Bloomberg analyst forecast): LTC (85%), ADA (70%), SOL (60%), XRP (50%), DOGE (20%).

Market demand

LTC and ADA have certain needs due to mature technology and community support; SOL benefits from the DeFi and NFT ecosystems, but is negatively affected by the downward trend of the MEME market; XRP is concerned by institutional investors; DOGE relies more on retail investor sentiment, and may have a limited scale.

3. Introduction to the target assets of ETFs and performance of token prices in the past month

ADA (Cardano)

Introduction: Cardano is an open source blockchain platform that focuses on academic research and sustainability, and supports the development of smart contracts and DApps.

Performance in the past month (January 18 - February 18, 2025): Price fell from USD 1 to USD 0.74, a decrease of approximately 26.41%.

XRP (Ripple)

Introduction: XRP is powered by Ripple Labs, focusing on cross-border payments and emphasizing fast and low-cost transactions.

Performance in the past month: Price fell from about $3.09 to $2.56, a drop of about 18.45%.

SOL (Solana)

Introduction: Solana is a high-performance public chain known for its high throughput and low latency, and is widely used in MEME, RWA, DeFi and NFT.

Performance in the past month: Price fell from about $242 to $169, a drop of about 31.91%.

LTC (Litecoin)

Introduction: Litecoin is a Bitcoin fork coin, positioned as "Bitcoin's silver", with faster transaction speed and lower fees.

Performance in the past month: Prices rose from about $117 to $131.33, up about 11.46%, boosted by ETF applications and market sentiment.

DOGE (Dogecoin)

Introduction: Dogecoin originated from the meme culture and is now a cryptocurrency with a high market value, driven by communities and celebrities (such as Musk).

Performance in the past month: Price fell from about US$0.35 to US$0.25, a drop of about 29.19%, with high volatility.

Summary

As of February 19, 2025, the crypto ETF market ushered in a new round of boom. Many institutions have submitted spot ETF applications for ADA (Cardano), XRP, SOL (Solana), LTC (Litecoin) and DOGE (Dogecoin), promoting the further integration of crypto assets into traditional finance. Asset management giants such as Grayscale, Bitwise, and VanEck lead the application, with different progress: LTC and ADA are highly likely to be approved due to their mature technology and regulatory friendliness, SOL and XRP need to overcome the dispute on the definition of "securities", and DOGE faces greater uncertainty due to the meme attribute. The review period is mostly concentrated between March and May 2025, and the open attitude of the new SEC leadership injects optimistic expectations into approvals.

In terms of the performance of target assets, affected by the overall market pullback in the past month, the decline was in the range of 20%-30%. Feasibility analysis shows that regulatory loosening, market demand and technological maturity are the key drivers of ETF approval, but legal risks are still the main challenges. In the coming months, investors and industry observers need to pay close attention to the final response of the SEC, and crypto ETFs may become an important weather vane for the crypto market in 2025.

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