Amplify ETFs Seeks Approval for Stablecoin and Tokenization Technology Funds

Executive Summary

Amplify ETFs, a provider of exchange-traded fund solutions, has submitted applications to the US Securities and Exchange Commission (SEC) for two novel products: the Amplify Stablecoin Technology ETF (QSTB) and the Amplify Tokenization Technology ETF (QTKN). These filings aim to provide investors with exposure to companies and infrastructure firms positioned to benefit from the growth of stablecoins and real-world asset (RWA) tokenization, marking a first-of-its-kind approach in the U.S. market. The initiative reflects a growing institutional interest in blockchain-based innovations while avoiding direct exposure to volatile crypto assets.

The Event in Detail

The Amplify Stablecoin Technology ETF (QSTB) is designed to track the performance of the Stablecoin Technology Index. This index comprises companies and crypto assets that play substantial roles in the stablecoin ecosystem, including those with significant revenues, investments, or infrastructure contributions. Stablecoins are digital tokens engineered to maintain a stable value relative to a reference asset, predominantly the U.S. dollar, and are increasingly utilized for digital payments and settlement mechanisms. The ETF seeks to target entities best positioned to capitalize on the expanding adoption of stablecoins for frictionless value transfer and liquidity.

Conversely, the Amplify Tokenization Technology ETF (QTKN) seeks to correlate with the performance of the Tokenization Technology Index. This index focuses on companies with substantial revenue, investments, or infrastructure roles related to tokenization, which involves converting ownership rights in assets like securities or commodities into digital tokens recorded on a blockchain. QTKN aims to leverage the trend of digitizing traditional assets to enhance liquidity and accessibility by tracking firms enabling this process, thereby streamlining asset issuance, trading, and settlement.

Christian Magoon, CEO of Amplify ETFs, stated that "Stablecoins and tokenization are quickly advancing as the foundation for future blockchain adoption. Stablecoins enable frictionless value transfer and liquidity, while tokenization is transforming how real-world assets are issued, traded, and settled." Amplify ETFs previously launched the first actively managed blockchain ETF, BLOK, in 2018, underscoring its commitment to innovation in the digital asset space.

Market Implications

The filings by Amplify ETFs arrive during a period of significant regulatory evolution and increasing institutional acceptance of crypto-adjacent financial products. The SEC's recent approval of generic listing standards for commodity-based trust shares effectively streamlines the approval process for qualifying crypto exchange-traded products, potentially shortening review timelines from up to 240 days to 60-75 days. Bloomberg Senior ETF Analyst Eric Balchunas has indicated that the odds for approval of various crypto ETF products are now considered effectively 100%, with the S-1 registration statements being the primary remaining hurdle after the 19b-4 process became less critical.

Broader market sentiment is cautiously optimistic regarding these specialized ETFs. The 2025 GENIUS Act established a U.S. stablecoin framework mandating 1:1 reserve backing and banking regulator oversight, effectively institutionalizing digital assets within traditional finance. This regulatory clarity has fueled significant growth; stablecoin market capitalization reached $251.7 billion by mid-2025, largely driven by cross-border remittances and corporate payroll. Ethereum-based ETFs, for instance, attracted $2 billion in inflows during July 2025 alone, demonstrating investor demand for compliant stablecoin investment vehicles. The approval of QSTB and QTKN could further open avenues for traditional investors to gain exposure to these nascent but significant crypto sub-sectors, potentially leading to increased capital inflow and broader adoption of stablecoin utility and RWA tokenization.

Expert Commentary

Christian Magoon's remarks highlight the strategic importance of stablecoins and tokenization as foundational elements for future blockchain adoption. The sentiment expressed by Bloomberg's Eric Balchunas regarding the high probability of crypto ETF approvals provides a backdrop of regulatory accommodation that may benefit Amplify's new filings. The regulatory clarity provided by the GENIUS Act is seen as a key catalyst, transforming stablecoins from speculative assets into regulated financial instruments, thereby unlocking opportunities for institutional-grade funds and cross-border payment platforms.

Broader Context

These ETF filings underscore a growing trend where traditional financial institutions seek exposure to blockchain innovation through regulated products, rather than direct investments in volatile cryptocurrencies. The focus on companies building the infrastructure for stablecoins and tokenization aligns with a strategy to capture value from the underlying technological advancements and growing utility of digital assets. While the "race for crypto ETF approvals" continues with numerous altcoin ETF applications, Amplify's specific focus on stablecoin and tokenization technology addresses distinct and rapidly evolving segments of the Web3 ecosystem. It is also noted that while regulatory clarity has advanced, risks such as the lack of FDIC insurance for stablecoins and potential for regulatory arbitrage from interest-bearing crypto exchanges continue to be considerations for investors and regulators.