Altcoins News

Story: Avalanche, Sui, and Bonk ETFs Challenge SEC as Issuers Enter Riskier Terrain

By James Thorp

1 / 15

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.

2 / 15

On September 16, 2025, several asset managers submitted filings for new crypto ETFs, reflecting the growing institutional interest in digital assets.

3 / 15

These filings expand an already significant backlog, with more than 90 crypto ETFs currently pending before the SEC.

4 / 15

According to Pratik Kala, head of research at Apollo Crypto, simpler ETFs such as Bitwise’s Avalanche product have the highest likelihood of approval.

5 / 15

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…

6 / 15

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…

7 / 15

Memecoins and Exotic Products Face Headwinds

8 / 15

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…

9 / 15

Basis trade ETFs—market-neutral products that execute hedge fund-style arbitrage between spot and futures contracts—also fall into this high-risk category.

10 / 15

Memecoins, by nature, exhibit volatile price swings and limited liquidity compared to major cryptocurrencies, raising potential concerns about investor protection and market…

11 / 15

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.

12 / 15

The filing blitz underscores the strategic positioning of issuers as they aim to capture investor capital ahead of potential market rotations.

13 / 15

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…

14 / 15

Investors are closely watching regulatory signals, as the SEC has recently clarified that certain memecoins are not securities.

15 / 15

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…

The Currency Analytics

Want the full story?