Crypto exchange-traded funds (ETFs) have surged in popularity, with nearly $1.9 billion in inflows recorded in the second last week of September. For the longest time, this space was dominated by Bitcoin ETFs, the likes of BlackRock’s iShares Bitcoin Trust ETF or ARK 21Shares Bitcoin ETF. But not anymore, with the SEC making way for faster clearance of such products, you have XRP and Dogecoin ETFs that have been launched and are gaining popularity.
According to Curt Hopkins, CEO of MCQMarkets.com, their appeal lies in their simplicity. “You don’t need to set up a wallet or manage private keys; you can buy them through platforms like Robinhood or Schwab, just like any stock,” he explained in a conversation with CoinHeadlines.com.
The approval of spot Bitcoin ETFs in January 2024 and the follow-up by Ethereum ETFs in the U.S. has added regulatory clarity, sparking adoption from both retail and institutional investors.
Beyond Bitcoin: Altcoins gain ground
Hopkins pointed to Dogecoin ETFs as a potential “tipping point,” fueled by millennial and Gen Z investors seeking to diversify. More issuers are expected to join the race, experimenting with fee structures, asset mixes, and niche strategies as the market matures.
From speculation to core allocation
Although much of today’s inflow may be speculative, Hopkins sees signs of a longer-term shift. Younger retail investors increasingly view crypto ETFs as part of their portfolios, similar to equities. “It’s engaging, it’s fun and it makes diversification more accessible,” he said.
Hopkins also drew parallels with MCQ Markets’ own offerings, such as fractional ownership in collector cars, which is also an exotic but tangible asset class. Both trends highlight how investors are blending traditional and alternative investments.
Macro tailwinds and regulatory shifts
Recent Federal Reserve rate cuts have added momentum to crypto inflows, but Hopkins emphasized that long-term adoption will focus on top tokens like Bitcoin, Ethereum, Litecoin, and Dogecoin. He also praised the SEC’s evolving stance under Chairman Paul Atkins, noting efforts to simplify ETF approvals and explore tokenization of private shares.
“This could reshape traditional finance,” Hopkins said, citing potential 24/7 trading and tokenized access to public equities. “We’re not just seeing cyclical flows, it’s the start of structural change.”