The phenomenon of the surge in applications for cryptocurrency ETFs mainly stems from the increasing interest and demand for cryptocurrencies in the market. Below is a detailed analysis of this phenomenon:

1. Market Demand Driven: With the continuous rise in prices of mainstream cryptocurrencies such as Bitcoin and Ethereum, the investment demand for cryptocurrencies is also increasing. Cryptocurrency ETFs, as a convenient and low-cost investment tool, can meet investors' needs for diversified portfolios, thus receiving a warm welcome from the market.

2. Improved Regulatory Environment: In recent years, the U.S. Securities and Exchange Commission (SEC) has gradually softened its stance on ETFs related to cryptocurrencies, providing a favorable regulatory environment for the application of cryptocurrency ETFs. Particularly, with the inauguration of the new President Trump and the departure of SEC Chair Gary Gensler, the market has high expectations that the new government will approve more cryptocurrency ETFs.