2025 Cryptocurrency ETF attracts 57.7 billion! XRP and Solana flood into Wall Street's feast

2025 Cryptocurrency ETFs Open the Doors to Wall Street, SEC Adopts New Strategy. Spot Bitcoin ETFs Generate $57.7 Billion in Net Inflows, Ethereum ETFs $12.6 Billion. After SEC Approved General Listing Standards in September, XRP and Solana ETFs Launched in November, with $883 Million and $92 Million in Net Inflows, respectively.

SEC’s General Listing Standards Rewrite Crypto ETF Rules of the Game

The biggest turning point in the 2025 cryptocurrency ETF market is the SEC’s approval of the general listing standards for commodity trust products in September. Prior to this, regulators responded to months of anticipation, with a backlog of ETF applications covering various digital assets. The key to approval was the answer long avoided by SEC leadership: When should digital assets be considered commodities?

The SEC is no longer forced to decide on the eligibility of each cryptocurrency case-by-case, from Dogecoin to meme coins endorsed by presidents, but has set trading standards that make digital assets suitable for commodity trusts. One of the most important factors is that the standard requires the underlying digital assets of ETFs to be actively traded on monitored markets, have a six-month futures trading history, or support exchange-traded funds with significant exposure.

Bloomberg senior ETF analyst Eric Balchunas told Decrypt in September that this means at least a dozen cryptocurrencies are immediately “ready for listing.” From his perspective, he describes this move as expected. The approval of general listing standards will significantly expand the number of products available to investors, but asset managers are still waiting for answers on at least 126 ETFs, according to Bloomberg senior research analyst James Seyffart on X.

These applications focus on emerging decentralized finance projects like Hyperliquid, and relatively new meme coins like Mog. This regulatory clarity clears the biggest hurdles for TradFi institutions. In the past, banks and asset managers’ biggest concern about cryptocurrencies was regulatory uncertainty. Now, with clear standards, TradFi institutions can confidently develop and sell crypto ETF products without fear of SEC enforcement actions after the fact.

Institutional Appeal of XRP and Solana ETFs

As the fifth and seventh largest digital assets by market cap, XRP and Solana faced regulatory resistance during the Biden administration, but these obstacles are gradually dissipating as they become the underlying assets of multiple products. Last year’s launch of spot Bitcoin ETFs sparked a wave of demand, pushing prices to new highs. While smaller cryptocurrencies have not yet shown similar performance, products focused on XRP and Solana have still seen significant activity.

Senior ETF strategist Juan Leon of Bitwise told Decrypt, “I don’t think they have had an expected impact on prices, but I do believe that, in terms of personal characteristics, they have achieved great success and proved investors’ interest beyond Bitcoin and Ethereum.” Leon said that the Solana and XRP ETFs launched in November were “poorly timed,” as recent macroeconomic conditions caused digital asset prices to decline.

According to CoinGlass data, the spot Solana ETF has generated $92 million in net inflows since launch, as of December 15. The spot XRP ETF launched in the same month and has accumulated about $883 million in net inflows since trading began. This difference indicates that the XRP community’s participation far exceeds that of Solana, possibly related to Ripple’s optimistic sentiment after the SEC case finally concluded.

Another notable reason for Solana ETF’s debut is that it is one of the earliest ETFs to share staking rewards with investors, a development supported by new guidelines from the U.S. Treasury Department and IRS last month. This staking feature allows Solana ETFs not only to provide price exposure but also to generate passive income for investors, making it highly attractive in traditional finance product design.

Three Major Milestones for 2025 Cryptocurrency ETFs

General Listing Standards Approved (September): SEC sets clear eligibility criteria, with at least a dozen cryptocurrencies “ready for listing”

XRP and Solana Launched (November): Fifth and seventh largest assets approved; Solana ETF introduces staking reward sharing

Sovereign and Academic Institutions Enter: Mubadala holds $567 million, Harvard Foundation holds $433 million

The world’s largest asset manager, BlackRock, has so far been one of the few financial giants to refrain from expanding its crypto product portfolio further, but Leon points out that the XRP and Solana communities may not need these assets. “The ETFs we see now show that these communities are more active, stronger, and larger than many think,” he said. “I believe this is a good sign for both ecosystems entering 2026.”

Index ETFs Will Become the First Choice for Institutional Allocation

Gerry O’Shea, Head of Global Market Insights at Hashdex Asset Management, said that in 2025, retail investors and hedge funds are most likely to hold spot crypto ETFs, but this dynamic could change rapidly. He told Decrypt that many advisors and professional investors are still conducting due diligence on ETFs tracking cryptocurrencies, but he feels they may soon seriously consider allocating to this asset class.

Vanguard announced earlier this month that it will allow its 50 million clients to trade some spot crypto ETFs on its brokerage platform. Meanwhile, U.S. banks have also approved moderate crypto allocations for private wealth clients starting next year. “About a year ago, regulatory uncertainty was high, and they weren’t ready to step into this space,” O’Shea said. “Now, the real question isn’t whether they should be exposed, but how they should get exposure.”

From this perspective, O’Shea believes ETFs tracking digital asset indices will become a more important topic next year. He said many professional investors appreciate that these funds’ holdings change over time, which makes them relatively comfortable. “They can allocate to index ETFs and broadly access market growth potential without needing to know every detail of each individual asset,” he explained.

In February this year, Hashdex launched the first U.S. spot ETF tracking multiple digital assets—the Hashdex Nasdaq Crypto Index ETF. The index includes Cardano, Chainlink, Stellar, and larger cryptocurrencies. Franklin D. Roosevelt, Grayscale, Bitwise, 21Shares, and CoinShares have also launched similar products. According to ETF trends, this set of index ETFs offers exposure to 19 digital assets. The shift from retail to institutional investment is very beneficial for the long-term sustainability of the asset class, as these investors have a longer-term horizon.