The cryptocurrency market may enter a new era as altcoin-related exchange-traded funds (ETFs) await SEC approval. According to Bloomberg senior ETF analyst Eric Balchunas, this could make the crypto landscape “pretty wild” if no major setbacks occur.
14 Altcoin ETFs Await Approval
Currently, 14 altcoin-focused ETFs are under review by the US Securities and Exchange Commission (SEC). These include funds tied to Solana (SOL), XRP, Hedera (HBAR), Litecoin (LTC), and mixed baskets featuring Bitcoin (BTC) and Ethereum (ETH).
Balchunas predicts the number of altcoin ETF applications will triple in the coming months, indicating growing interest in expanding crypto investment options.
Optimism Following Trump’s Election Victory
The US election results have created a favorable environment for crypto ETFs. Nate Geraci, CEO of ETF Store, speculated that spot crypto ETFs might soon hit the market, stating:
Since his prediction, three new ETFs have been filed. Canary Capital submitted a Hedera (HBAR) ETF on November 12, Bitwise registered a Solana (SOL) trust on November 21, and NYSE filed for a Bitcoin-Ethereum mixed ETF just days later.
Solana ETFs Show Long-Term Promise
Bloomberg ETF analyst James Seyffart expressed optimism about Solana-related ETFs, expecting SEC approval within two years. However, he noted the risk of delays, referencing the SEC’s decision to block Solana ETFs from VanEck and 21Shares earlier this year.
Litecoin ETF Likely to Gain Approval
Litecoin’s ETF, filed by Canary Capital, may have a better chance of approval. According to Alex Thorn, head of research at Galaxy Digital, Litecoin’s fair launch—lacking a pre-mine or token sale—positions it favorably with regulators. Thorn believes the SEC is unlikely to classify LTC as a security.
Crypto ETFs Could Reshape the Market
If approved, these altcoin ETFs could revolutionize crypto investing, attracting both institutional and retail investors. However, regulatory hurdles remain a critical factor in determining their success.
