Crypto ETFs enter maturity phase as IRS and SEC actions drive rapid expansion of products
A few years ago, a long government shutdown would have been seen as a crisis for traditional markets and an opportunity for crypto entrepreneurs. That tension framed the opening of a wide-ranging discussion about how much the digital asset market has changed since then at the ETP Forum in New York on Tuesday.
The panel, made up of exchange-traded fund (ETF) providers, lawyers and derivatives specialists, went through the forces restructuring the crypto ETF space and the operational work that is happening behind the scenes to keep up with the rapid expansion of the product.
One of the clearest themes is the transition from crypto as a speculative trading class to crypto as an investment class. Earlier cycles were driven by price spikes, momentum and retail enthusiasm. Today’s environment looks different. ETFs hold a significant portion of Bitcoin’s Market cap, and new area funds for ether and major altcoins have brought the asset class into major brokerage channels. This access creates new expectations. Today’s investors want ETFs that act more like long-term holdings and less like single bets.
A major catalyst for that shift came from the Internal Revenue Service (IRS). The agency has released guidance that gives funds a safe path to stake assets like Ether and Solana without risking their tax status. Staking is how many blockchains secure their networks, and it produces a predictable yield. Before making the decision, investors have to choose between the safety of an ETF and the staking rewards offered by private wallets. Now funds can earn and distribute rewards, bringing on-chain economics to the regulated world. For issuers, Staking also forces new discipline: they must manage lockups, liquidity and policies that keep redemption processes running even when assets are tied to a network.
Regulation has also moved to the list side. The Securities and Exchange Commission (SEC) has introduced listing standards that generally allow exchanges of certain crypto ETFs without exemption requests. That creates a fast line for new products. Solana, and the HEDERA (HBAR) ETF appeared soon after the rules arrived. The standards rely heavily on monitoring agreements and quantitative data from established areas, giving regulators comfort that they can detect manipulation. The agency plans to expand the list as more properties meet those requirements, which could open the door for dozens of additional funds.
The wave of approval forced companies to refine their internal machinery. Auditors must prepare for quarterly reporting on ACT’s 33 funds and handle tax events triggered by fork or protocol changes.
SWAP desks build structures that deliver leverage, staking economics and synthetic exposure without requiring funds to hold the underlying tokens. Issuers include in-kind transactions, which help ETFs mirror the way crypto moves in the markets. Each change moves products closer to the full experience of holding assets directly, but with guardrails that provide funds that are provided.
The panel also explored how index products could shape the next phase of adoption. Many investors no longer want to choose individual blockchains. They want different exposures that automatically update as the sector changes. Issuers have already started introducing various crypto indexes, and there are more to come. The 40 Act framework is often a better fit for these funds because it supports active management, rebalancing and tax efficiency that Grantor Trusts cannot offer.
Another topic is the rise of digital asset treasuries, or dats. These public companies hold tokens as their primary asset and often use debt to increase exposure. They operate more like leveraged crypto vehicles than ETFs, and their structure creates a different risk profile. Panelists noted that DATs offer flexibility and an issuer-driven narrative, but ETFs still provide clearer mandates, lighter monitoring and established redemption flows.
Futures and derivatives circled the conversation. Retail traders have gained early familiarity with perpetual futures on offshore platforms, but many still shy away from regulated futures due to margin complexity and higher costs. Some panelists expect more interest as Commodity and Futures Commission (CFTC) oversight increases, but others believe ETFs will remain the easier path for most investors.
The session closed with a shared point: Crypto ETFs moved past the new. They now sit within a broad regulatory, operational and strategic framework that resembles the rest of the investment world. The challenge ahead is less about launching access products and more about maintaining the infrastructure required to support a growing ecosystem of strategies, assets and investors.
