ETF Prime: Islam Unpacks Crypto ETFs and Legislation Updates

On this week’s episode of ETF Prime, Roxanna Islam, Head of Sector & Industry Research at VettaFi, discusses the latest updates in crypto ETFs. Later, Matt Bartolini, Head of Americas ETF Research at State Street Global Advisors, shares insights on recent market trends and SPDR ETFs.Roxanna Islam on Crypto ETFs and Regulatory ShiftsIslam offered an in-depth look at the rapidly evolving landscape of crypto ETFs, highlighting recent legislative progress and market performance. Islam noted a significant shift in the crypto market’s optimistic tone, largely due to increased regulatory clarity. A major development discussed was “crypto week,” which saw progress on several key pieces of legislation. While not all the acts are direct to crypto ETFs, any positive news for crypto regulation is broadly beneficial for the sector, according to Islam. The GENIUS Act has been signed into law, establishing a legal framework for stablecoins by outlining disclosures and compliance regulations, Islam said. The Anti-CBDC Surveillance State Act, passed by the House, aims to prevent the Federal Reserve from issuing a central bank digital currency directly to individuals, citing privacy concerns.  Most significant for crypto ETFs, according to Islam, is the CLARITY Act, also passed by the House, which seeks to clarify whether a token is regulated by the SEC or the CFTC, addressing the security versus commodity debate. Legislative Progress Supports Overall Investor Sentiment for CryptoThese legislative movements have fueled positive momentum in crypto prices and ETF flows, according to Islam. Bitcoin prices recently hit a new high of over $120,000, with spot Bitcoin ETFs seeing over $2 billion in net inflows in a week, contributing to $19 billion in total net inflows year-to-date for the category. Ether prices have also surged, increasing over 25% in the past few days, with spot Ether ETFs seeing $2.7 billion in net inflows in the past week. This marks a significant rise compared to the $5 billion year-to-date total. Spot Ether ETFs have seen 12 consecutive days of inflows, totaling over $3.5 billion, Islam said. Islam also detailed the emergence of newer crypto ETF offerings. The REX-Osprey SOL + Staking ETF (SSK) is a particularly interesting product, being the first Solana ETF, spot Solana ETF, and staking ETF. Despite a higher fee of 140 basis points, SSKI saw a strong initial reaction with approximately $60 billion in net inflows within its first few days. Flows grew to $80-$90 billion after the first couple of weeks, Islam said. Other products, including futures-based Solana and futures-based XRP ETFs from ProShares, Volatility Shares, and Teucrium, also indicate a growing investor appetite for diverse crypto exposure beyond just Bitcoin and Ether, according to Islam.Matt Bartolini on ETF Market Trends and State Street OfferingsSSGA’s Bartolini provided insights into broader ETF market trends and the firm’s specific offerings. Bartolini highlighted that ETF flows are on track to set a new record in 2025, potentially reaching $1.3 trillion, driven by long-term secular plays such as low-cost exposures and the rise of active ETFs. ETFs serve as a “tool for action” for investors navigating volatile and uncertain markets, he added. Bartolini also touched upon the strong interest in the SPDR Portfolio S&P 500 ETF (SPLG A), which is among the top five ETFs by net flows year to date.  Additionally, the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL A-) and the SPDR Gold Shares ETF (GLD A-) have seen significant inflows due to investor interest in short-duration fixed income and gold amid dollar weakness and rising deficits.  Bartolini also highlighted two new high-profile SSGA launches: the SPDR Bridgewater All Weather ETF (ALLW), which has quickly accumulated over $250 million in assets, and the SPDR SSGA IG Public and Private Credit ETF (PRIV), which has garnered over $140 million in assets.For more ETF Prime podcast episodes, visit our ETF Prime Content Hub.