Surge in crypto ETF filings following Trump's return to power: Report

With US President Donald Trump favouring crypto, there has been a surge in new crypto exchange-traded fund (ETF) filings, reaching 47 active filings in the US, according to a report by global crypto exchange Binance.

 

These filings belong to 16 distinct virtual digital asset (VDA) categories, including memecoins. The rise of token launchpads and growing interest in memecoins has led to the creation of over 37 million tokens, a number expected to grow to over 100 million by the end of this year.

 

However, the surge in tokens has not yet generated sufficient valuations. The report added that the growth has fragmented capital, making it difficult for tokens to maintain stable prices and eventually achieve high valuations.

 

A majority of tokens have negligible market capitalisation, the report said, adding that the top 100 tokens represent around 98 per cent of the total crypto market cap.

 

"The influx of new tokens fuels speculation, reduces attention spans, and discourages long-term holding," it added.

 

Last month, the market for non-fungible tokens (NFTs) declined, with sales volumes dropping across the top ten NFT chains. The number of monthly NFT transactions fell to 5.1 million, the lowest level since March 2021, according to the report.

 

MakersPlace, a digital art NFT platform, announced its closure last month after six years of operations. Ethereum sales declined 39.1 per cent, with drops in legacy projects such as Bored Ape Yacht Club and Cryptopunks.

 

The global cryptocurrency market peaked at $3.76 trillion last month but lost momentum after the debut of the Chinese artificial intelligence model DeepSeek, causing a two per cent decline in the US and crypto markets, according to the report.