In a candid revelation, REX Financial CEO Greg King has highlighted the precarious nature of the vast cryptocurrency market, urging ETF issuers to exercise caution. Speaking on August 26, 2025, King emphasized that delving into digital assets beyond the top 10 cryptocurrencies can be a gamble, calling many of these lesser-known tokens “pretty sketchy.”
Scrutinizing the Sketchy Underbelly
King’s remarks come at a critical juncture for the crypto world—a landscape that continues to evolve with bewildering speed. While the top echelons of cryptocurrencies, such as Bitcoin and Ethereum, remain relatively stable and well-regarded, the waters get murky as one descends the ranks. “Once you step outside the top 10, the risk escalates,” King observed. This warning is particularly salient for ETF issuers, who are tasked with choosing which tokens to package into funds for investors. This cautionary stance is especially relevant in light of recent developments, such as the Ethereum in, Bitcoin out: Historic ‘Flippening’ Happens in ETFs, which highlights shifting dynamics within the market.
The crypto market is notorious for its volatility, and while the promise of high returns is enticing, the pitfalls can be severe. Many coins lack transparency, and their underlying technology can be questionable, leading to significant financial loss. King’s advice acts as a sobering reminder of the due diligence required in this high-stakes arena.
A Historical Perspective on Crypto Funds
The allure of cryptocurrency ETFs is nothing new. Since the first Bitcoin ETF launched in October 2021, the appetite for digital asset funds has surged. Yet, with this boom comes an increased responsibility to sift through the clutter. As King noted, “It’s not just about the next big thing; it’s about understanding what you’re putting your name behind.”
Historically, the crypto market has seen its fair share of debacles—from coins that vanished overnight to platforms that promised the moon but delivered dust. These instances underscore the importance of thorough research and strategic selection in fund creation. For ETF issuers, the challenge lies in balancing innovation with prudence. Recent market shifts, such as the Bitcoin ETFs Shed $1 Billion in Five Days Amid Ethereum Comeback, further illustrate the volatility and rapid changes that can affect fund performance.
Navigating the Future of Crypto ETFs
Looking ahead, the trajectory of crypto ETFs remains uncertain. As the market matures, regulatory scrutiny intensifies. Governments worldwide are grappling with how to regulate these digital assets, adding another layer of complexity for issuers. “We’re in a transitional phase,” King remarked. “The rules are still being written, and we need to be prepared for changes.”
This evolving regulatory landscape could reshape the way ETFs operate, potentially affecting investor confidence and market dynamics. For now, King’s words serve as both a warning and a guiding principle for those looking to navigate the crypto ETF space: proceed with caution, and always question the integrity of the assets at play.
In the end, while the crypto market promises unparalleled opportunities, it also demands a level of scrutiny and skepticism akin to traditional financial markets. As issuers and investors alike chart this uncertain terrain, the balance between risk and reward will continue to be a delicate dance. And as the crypto narrative unfolds, one thing remains clear—vigilance is paramount.
Source
This article is based on: ETF issuers must be picky as most crypto is ‘pretty sketchy,’ REX CEO says
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
