Simply put
- Analysts had anticipated several altcoin ETFs to launch in early October.
- The ongoing U.S. government shutdown seems to have stalled the regulatory approval timeline.
- Since its debut in late October, the Bitwise Solana Staking ETF has raised $611 million.
So, is the long-awaited wave of physical altcoin ETFs finally beginning? It seems like more crypto ETFs are gearing up to start trading soon, especially after a few recent launches.
Bloomberg analyst James Seifert mentioned that Bitwise Asset Management’s XRP ETF is expected to begin trading on Thursday, as noted in a post on Monday. He also pointed out that Grayscale and Franklin Templeton’s fund, which focuses on the fourth-largest cryptocurrency, might be listed on Monday, alongside the Grayscale Dogecoin ETF.
“It looks like [Bitwise] will launch the XRP ETF tomorrow,” Seifert noted, adding that the information is available on Bloomberg’s terminal, with the ticker being XRP.
We’ve made attempts to reach Bitwise, Grayscale, and Franklin Templeton for official updates.
The upcoming listings follow an active few weeks filled with announcements about Solana and XRP funds, such as Bitwise’s Solana Staking ETF and Canary Capital’s XRP ETF. Firms like Grayscale, VanEck, and Fidelity also launched their Solana funds recently.
The Canary Capital XRP Fund kicked off strong, pulling in $58 million in net investments on its first day, topping Bitwise’s Solana ETF which saw $57 million. This impressive flow surprises many, as Bloomberg’s senior ETF analyst Balchunas had initially expected around $17 million for XRPC’s debut, highlighting the rising interest in crypto investment products after the positive reception of Bitcoin and Ethereum spot ETFs and a more favorable regulatory atmosphere.
Currently, there are eleven Bitcoin funds managing over $130 billion in assets, with BlackRock’s iShares Bitcoin Trust holding the majority. Additionally, nine Ethereum funds oversee more than $18 billion in total investments.
Both traditional and digital finance issuers have submitted numerous ETF proposals to the U.S. Securities and Exchange Commission, targeting individual altcoins, combinations, and crypto strategies.
Earlier this year, Balchunas mentioned that he expected the first approvals for these funds by early October, with several likely to be greenlit. The SEC’s recently adopted listing standards for generic drugs seemed to enhance those prospects.
However, the protracted government shutdown in the U.S. hampered the processing of these approvals, leaving analysts uncertain about the exact timeline for investor access.
According to Sumit Roy, a senior analyst at ETF.com, “The government shutdown slowed things down a bit, but now that the government has reopened, we’re seeing a surge, which is completely expected.” He added that this trend should continue as more ETFs emerge for major and mid-tier tokens.
