Simply put
- Analysts suggest that several crypto spot ETF applications, including those for Dogecoin, Solana, and XRP, are likely to gain approval by year-end.
- Bloomberg ETF analyst James Seifert noted that while approval could come as soon as next month or potentially in late fall, it’s seemingly more about “when” rather than “if.”
- Other altcoin ETFs anticipated to launch on Wall Street include Litecoin, Cardano, Polkadot, and Avalanche.
Two analysts from Wall Street express strong confidence that a significant number of top altcoin ETFs will soon receive approval for trading. They estimate a nearly 100% likelihood of such approvals by year’s end.
Eric Baltunas and James Seifert have outlined that Solana, XRP, and Litecoin spot ETFs have a 95% chance of being approved by the end of 2025. I shared my thoughts on this last Friday.
They further indicated that Dogecoin, Cardano, Polkadot, Hedera, and Avalanche spot ETF applications also seem likely, with a 90% approval chance by year-end.
Should these altcoin ETF applications gain SEC approval soon, it would represent a significant milestone for Wall Street. Up until now, the agency has only sanctioned Bitcoin and Ethereum-related spot ETFs.
The success of these existing funds has spurred increased interest in crypto-focused ETFs and related investment products. Currently, the spot Bitcoin ETF oversees over $100 billion in assets, while BlackRock’s Ishares Bitcoin Trust (IBIT) is quickly approaching $70 billion in assets under management (AUM), outpacing historical competitors based on company data.
Bitcoin and Ethereum have long been seen as leaders when it comes to legitimacy and sustainability in the crypto space, making them stand out for mainstream investors.
The ongoing batch of candidates for spot ETF trading includes tokens that, in comparison, have significantly lower market valuations than Bitcoin and Ethereum.
For instance, Dogecoin, the first meme coin, and Avalanche, a token that represents a network holding less than 2% of the total value locked in Ethereum, are noteworthy. Polkadot’s native token, for example, has a market cap of just $5.2 billion, while Ethereum is at $293 billion.
If these altcoin ETFs start trading on Wall Street, traditional financial institutions and retail investors will be able to engage with these historically volatile tokens directly. A spot ETF issues actual cryptocurrencies represented by the financial products, effectively purchasing and storing them for its clients.
Rick Edelman, founder of the Digital Assets Council of Financial Professionals, pointed out that the rise of crypto ETFs was somewhat expected after President Trump’s re-election last fall, as he actively campaigned on a pro-crypto platform.
Edelman remarked, “It’s inevitable that we will witness many other single and multi-asset ETFs for digital coins and tokens. Bitcoin and the Ethereum ETF are merely the beginning.”
He elaborated that as tokenization expands, and more assets are tokenized, we could see a vast number of ETFs or their tokenized equivalents emerging—potentially the largest surge of investment opportunities to date.
Bloomberg analysts believe the SEC’s impending approval of numerous crypto ETFs beyond Bitcoin is partly due to the agency’s recent openness to listing demands.
Various Wall Street firms, from crypto-focused investment managers like Grayscale to traditional financial entities such as Fidelity and Franklin Templeton, have submitted applications.
Seyfert from Bloomberg expressed optimism about the SEC’s involvement, suggesting it’s a favorable sign in their view.
Another factor likely heightening the odds of a favorable outcome for altcoins’ spot ETF approvals is that the CFTC has recently sanctioned the futures market for these assets. Futures ETFs track the prices of derivative contracts without engaging in the actual buying and selling of the underlying assets.
While Bloomberg analysts anticipate that altcoin spot ETFs will receive approval by year-end, the exact timing is uncertain. Seifert mentioned it could range from next month to late fall, but it really seems to hinge on “when” rather than “if.”
Brian Rudick, leading strategy at a Solana-focused finance company, commented that while ETF approvals for some low-volume altcoins may not immediately drive demand, Wall Street’s entry could significantly influence prices for well-known tokens such as Solana.
“While the market may not show immediate interest in long-tail alt ETFs, more established ETFs like Solana’s are poised for strong inflows, potentially acting as a major catalyst for the prices of underlying tokens,” Rudick said. In fact, spot ETFs have been influential in doubling Bitcoin prices since BlackRock applied for the spot Bitcoin ETF in mid-2023, particularly due to substantial inflows seen in the initial six months post-launch.
