The New Trend of Crypto ETFs: How Will It Affect the Market?

Jakarta, Pintu News – The crypto market is growing with many innovations in investment products, one of which is the launch of cryptocurrency-based Exchange-Traded Funds (ETFs). Several investment firms are now starting to submit applications for more sophisticated crypto ETFs, including actively managed and leveraged products.

According to Decrypt, this indicates that institutional investors are increasingly looking at cryptocurrencies as a component of their portfolios. Moreover, with the approval of simpler Bitcoin (BTC) and Ethereum (ETH) ETFs, these new products have the potential to bring a huge surge to the crypto market in the near future.

Check out the full information in this article!

More Sophisticated Crypto ETF Products: Innovation or Risk?

Major investment firms are now starting to submit applications for crypto ETFs that are not just limited to spot products, but also those that are actively managed and use leveraged strategies.

Recent applications filed by 21Shares show plans to introduce active crypto ETFs, including one that involves doubling the leverage for Dogecoin (DOGE) and Sui.

This is expected to be a major trend in the next 12 months, according to analysis by Eric Balchunas of Bloomberg. With a strategy like this, investors looking to gain more aggressive exposure to crypto could have a wider range of options.

However, despite the potential for greater returns, actively managed ETF products also present their own challenges. As Bridget Nichols, Chief Commercial Officer at Monochrome explains, products that rely on active strategies tend to be more volatile and risky than passive ETFs.

Read also: Price of 1 Pi Network (PI) in Indonesia Today (26/8/25)

Crypto ETF Potential for Institutional Investors

With a growing number of crypto ETFs being proposed, including those involving major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), this reflects a major shift in the way institutional investors are approaching the crypto market.

Charmaine Tam, Head of OTC Sales at Hex Trust, explained that the approval of spot-based Bitcoin and Ethereum ETFs has created a regulatory precedent that allows issuers to be more confident in proposing more complex products.

These products, such as actively managed ETFs, will provide opportunities for professional managers to manage investor funds in a more structured way.

In addition, leveraged products, such as the Dogecoin (DOGE) ETF and Sui, are also attracting the attention of investors looking to take larger positions with higher risk. With strategies like these, actively managed funds can provide more aggressive exposure to the price movements of certain cryptocurrencies, such as Dogecoin (DOGE), which are known to be highly volatile.

Read also: Hyperliquid (HYPE) Predicted to Soar 126x in 3 Years, Arthur Hayes Provides Analysis!

Crypto ETFs: Future or Threat to Retail Investors?

While crypto ETFs are increasingly in demand, experts also caution that these products are more suitable for experienced investors, especially those who understand the volatility of the crypto market.

Peter Chung, Head of Research at Presto Labs, states that a key challenge for actively managed ETFs is the manager’s ability to beat the market benchmark. These products tend to be more volatile, and for retail investors, a deeper understanding of the risks and potential returns is necessary.

However, despite the challenges, the decision to provide more options for investors is a positive step. The existence of crypto ETFs provides an opportunity for more people to participate in the crypto market without having to buy digital assets directly. In addition, with the existence of crypto ETFs, institutional capital is increasingly emboldened to enter the crypto market which was previously considered too risky.

Conclusion

With the advent of these more sophisticated crypto ETFs, the cryptocurrency market is increasingly wide open to different types of investors, both institutional and retail. While these products offer great opportunities, they also carry considerable risks, especially for investors who do not yet understand the dynamics of the crypto market well.

Therefore, it is important for every investor to conduct in-depth research and ensure the product they choose suits their investment objectives and risk tolerance.

That’s the latest information about crypto. Follow us on Google News to get the latest crypto news about crypto projects and blockchain technology. Also, learn crypto from scratch with complete discussion through Pintu Academy and stay up-to-date with the latest crypto market such as bitcoin price today, xrp coin price today, dogecoin and other crypto asset prices through Pintu Market.

Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app through Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.

*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Decrypt. New ETF Filings Hint at Broader Crypto Product Boom Ahead. Accessed August 26, 2025.
• Featured Image: AMB Crypto