The U.S. Securities and Exchange Commission (SEC) is once again in the spotlight as a fresh wave of cryptocurrency exchange-traded fund (ETF) filings hits its desk. This time, the focus spans a diverse set of digital assets, from infrastructure coins like Avalanche (AVAX) and Sui (SUI) to memecoins such as Bonk (BONK), as well as innovative strategies like basis trading and leveraged products. Analysts suggest that while some of these ETFs are likely to gain approval, others could face heightened scrutiny due to their complexity or liquidity risks.
A Flood of Crypto ETF Filings
On September 16, 2025, several asset managers submitted filings for new crypto ETFs, reflecting the growing institutional interest in digital assets. Bitwise filed a spot Avalanche ETF alongside a Stablecoin & Tokenization ETF, Defiance ETFs targeted Bitcoin and Ethereum basis trades, Tuttle introduced “Income Blast” funds for Bonk, Litecoin (LTC), and Sui, and T-Rex proposed a leveraged 2x Orbs ETF.
These filings expand an already significant backlog, with more than 90 crypto ETFs currently pending before the SEC. The filings demonstrate a clear trend: issuers are increasingly pushing boundaries, exploring products that range from straightforward spot ETFs to highly specialized and leveraged offerings.
Infrastructure Coins Lead the Pack
According to Pratik Kala, head of research at Apollo Crypto, simpler ETFs such as Bitwise’s Avalanche product have the highest likelihood of approval. “The spot AVAX ETF should have the highest chance of approval because it’s a straightforward product compared to others,” he explained.
Infrastructure-focused coins like Avalanche and Sui benefit from their strong fundamentals and growing real-world usage, making them attractive to both retail and institutional investors. Pav Hundal, lead analyst at Swyftx, noted that these assets are “close enough to Ethereum in utility and adoption” to earn favorable regulatory consideration.
The SEC has previously indicated that infrastructure coins with clear use cases and high liquidity are easier to classify, giving products like AVAX and SUI ETFs a structural advantage over more speculative offerings.
Memecoins and Exotic Products Face Headwinds
In contrast, ETFs tied to memecoins or employing complex strategies face more obstacles. Tuttle Capital’s Bonk ETF and related “Income Blast” products, for example, will likely encounter tougher scrutiny. Kala explained, “It would be fair for the SEC to draw a harder line for memecoin-based ETFs due to long-term sustainability concerns and liquidity challenges.”
Basis trade ETFs—market-neutral products that execute hedge fund-style arbitrage between spot and futures contracts—also fall into this high-risk category. Defiance’s Bitcoin and Ethereum basis ETFs are the first of their kind in the U.S., and regulators may take extra time to evaluate their structure and systemic impact.
Memecoins, by nature, exhibit volatile price swings and limited liquidity compared to major cryptocurrencies, raising potential concerns about investor protection and market stability. Despite growing public interest, the SEC has historically taken a cautious approach with speculative assets, meaning these filings may face extended review periods or modifications before approval.
The Growing Institutional Appetite
Institutional demand for crypto ETFs has been surging in 2025, driven by a mix of retail interest, regulatory clarity, and the promise of yield-bearing digital assets. Last week, U.S. spot Bitcoin ETFs recorded inflows of 20,685 BTC—the highest weekly intake since July—pushing combined holdings above 1.32 million BTC. Analysts see this as evidence that institutional investors are actively seeking regulated vehicles to access crypto exposure.
The filing blitz underscores the strategic positioning of issuers as they aim to capture investor capital ahead of potential market rotations. Some products, like the AVAX ETF, offer exposure to high-quality infrastructure coins, while others target niche audiences seeking leverage, yield, or exposure to speculative altcoins.
Market Implications
The SEC’s decisions on these ETFs will likely influence the broader cryptocurrency market. Approval of AVAX or SUI ETFs could increase institutional inflows, strengthen liquidity, and enhance the legitimacy of these tokens among mainstream investors. Conversely, delays or rejections—particularly for memecoin and basis-trade ETFs—could heighten volatility and temper enthusiasm in the short term.
Investors are closely watching regulatory signals, as the SEC has recently clarified that certain memecoins are not securities. This distinction provides some room for memecoin ETFs to gain approval, though liquidity and volatility concerns remain key hurdles.
Looking Ahead
The current filings reflect a maturing crypto ETF landscape. Issuers are no longer limited to Bitcoin or Ethereum—they are exploring alternative layer-1 tokens, memecoins, and innovative strategies designed to offer both yield and market-neutral returns. Analysts predict that while infrastructure-focused ETFs are likely to receive approval sooner, high-risk or exotic products may require additional review, legal revisions, or structural changes before clearance.
Stephen Gregory, founder of Vtrader, observed that this growing diversity in crypto ETFs represents a “strategic race” to capture a shift in wealth from older investors to younger, digital-native participants who are comfortable with alternative investment narratives.
As the SEC evaluates these new filings, the market can expect a combination of excitement, cautious optimism, and regulatory conservatism. For issuers and investors alike, the challenge will be balancing innovation with compliance, ensuring that products offer exposure to promising digital assets without exposing participants to undue risk.
Conclusion
The surge of crypto ETF filings—from AVAX and SUI to Bonk and basis-trade products—illustrates both the growing appetite for regulated digital asset exposure and the challenges inherent in navigating U.S. securities regulations. While infrastructure coins are positioned to gain approval due to clear utility and liquidity, memecoins and exotic ETFs face heightened scrutiny.
For the crypto market, these developments highlight an evolving landscape where regulatory clarity, investor protection, and market innovation intersect. The SEC’s upcoming decisions will not only shape investor access to these products but also signal the broader trajectory of institutional participation in cryptocurrency markets.
As issuers push the boundaries of what is possible in crypto ETFs, market participants are reminded that regulatory approval remains a crucial step for legitimacy and long-term market stability.
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