- Analysts say altcoin ETF approval is now a “matter of when, not if,” citing SEC’s proactive stance on crypto products.
- They place 95% odds on Solana, XRP, and Litecoin ETF approvals, with Dogecoin and others at 90%.
- Bitcoin and Ethereum ETFs pave the way for smaller-cap crypto inclusion in mainstream financial products.
Crypto investment products are set for expansion, with Bloomberg analysts James Seyffart and Eric Balchunas forecasting the approval of several altcoin spot ETFs by the end of 2025. The analysts assign a 95% chance of approval for Solana, XRP and Litecoin ETFs, while Dogecoin, Cardano, Polkadot, Avalanche and Hedera are close behind with 90% odds.
Their increased confidence follows a positive shift in the US Securities and Exchange Commission’s (SEC) engagement with crypto ETF issuers, with Seyffart saying that it is now a “matter of when not if” the approvals are granted. The SEC has recently requested updates from Solana ETF issuers, including details on staking, and extended the public comment window on applications such as Franklin Templeton’s Solana and XRP filings.
Related: Crypto ETFs Set New Record at $62.9 Billion After Four Weeks of Straight Inflows
Altcoins Line Up Behind Bitcoin’s ETF Breakthrough
The SEC has so far only approved Bitcoin and Ethereum ETFs. These have seen massive adoption with Bitcoin spot ETFs now managing over US$100 billion (AU$156 billion) in assets. BlackRock’s iShares Bitcoin Trust in particular has surpassed US$70 billion in AUM faster than any previous ETFs. This has set the stage for broader crypto investment products.
Altcoin ETFs would allow traditional finance investors to gain direct exposure to a wider range of digital assets. Issuers purchase and hold cryptocurrencies on behalf of clients, making these products accessible without the need for crypto wallets or exchanges.
Many of the tokens in question are significantly smaller than Ethereum and Bitcoin. Polkadot’s market cap is just US$5.2 billion (AU$8.11 billion), and Avalanche holds under 2% of the value locked on Ethereum. Still, analysts believe these assets are ready for broader financial adoption.
With over 20 ETF filings pending, the SEC’s willingness to engage has fuelled expectations that a wave of new crypto products could hit the market in the coming months.
Related: Purpose Launches Canada’s First XRP ETF, Trading Begins 18 June on TSX
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