The approval of Bitcoin and Ethereum spot ETFs in the United States marked a historic shift, opening the gates for institutional capital to flow into the crypto market. Now, with regulatory attitudes softening, a new wave of ETF applications is emerging—this time focused on alternative cryptocurrencies like XRP, Solana, and Litecoin.
This movement signals a maturation of the crypto asset class and reflects growing confidence among traditional finance players. As major asset managers expand their offerings, the landscape of digital asset investment is evolving rapidly.
The First Wave: Bitcoin and Ethereum Set the Stage
The launch of Bitcoin ETFs in early 2024 provided a regulated and accessible way for traditional investors to gain exposure to cryptocurrency. Almost immediately, these products attracted billions in assets, demonstrating significant market demand.
Ethereum spot ETFs followed in mid-2024, further legitimizing the crypto ecosystem and introducing smart contract capabilities to a broader investor base. These developments weren’t isolated—large institutions like BlackRock and Grayscale played pivotal roles in bringing these products to market.
Simultaneously, platforms like Robinhood began offering staking services for assets such as Ethereum and Solana, adding another layer of utility and engagement for retail and institutional participants alike.
Regulatory Shift: Paving the Way for New Crypto ETFs
In 2025, the U.S. Securities and Exchange Commission (SEC) introduced updated guidelines for crypto ETF filings, clarifying requirements around custody, valuation, and disclosure. These changes streamlined the approval process and established a clearer regulatory framework.
This shift indicates a move from resistance to structured acceptance—a turning point for the industry. Over 70 ETF applications are rumored to be in the pipeline, including proposals for XRP, Solana, Litecoin, Cardano, Dogecoin, and others.
This wave of filings reflects both market optimism and a strategic push by asset managers to diversify their crypto offerings.
Top Contenders for the Next ETF Approval
According to analysts, several altcoins are leading the race for ETF approval. XRP, Solana (SOL), and Litecoin (LTC) are among the most likely candidates, with approval probability estimates ranging between 90% and 95%.
Other strong contenders include Cardano (ADA) and Polkadot (DOT), which are also seeing growing institutional interest. The recent approval of multi-asset ETFs—which bundle several cryptocurrencies into a single product—has further accelerated this trend.
These products simplify portfolio diversification and reduce operational complexity, making crypto investing more accessible to a wider audience.
Innovation and Strategy: How Institutions Are Adapting
Large asset managers are no longer limiting themselves to Bitcoin and Ethereum. Many are exploring products that include altcoins like Solana, Cardano, and Polkadot. Some are even researching tokenization and NFT-based mechanisms for future offerings.
This shift indicates a broader strategy: from merely holding cryptocurrencies to structuring sophisticated financial products that offer competitive advantages. Staking rewards, multi-asset funds, and thematic crypto baskets are becoming part of this new offering mix.
Even politically aligned entities have entered the fray, with Trump Media filing for a combined Bitcoin and Ethereum ETF, highlighting the cross-sector interest in crypto adoption.
Market Impact: Benefits of the ETF Expansion
The introduction of new crypto ETFs brings several advantages:
- Improved Liquidity: ETFs channel large volumes of capital into crypto markets, tightening bid-ask spreads and supporting price stability.
- Lower Barrier to Entry: Investors can gain exposure without managing private keys or navigating crypto exchanges.
- Institutional Participation: Traditional finance involvement accelerates the development of custody, compliance, and security standards.
- Market Maturity: A broader range of ETFs supports asset rotation strategies and helps establish a more balanced digital asset ecosystem.
Still, this growth comes with its own set of challenges and considerations.
Challenges and Risks in the ETF Landscape
Regulatory uncertainty remains—even with clearer guidelines, the SEC continues to scrutinize new applications for potential fraud, market manipulation, and investor protection issues.
Single-asset ETFs based on altcoins may face liquidity and valuation challenges, especially during periods of high volatility. Additionally, the complexity of these products requires better investor education and transparent risk disclosure.
There is also concern that meme coins or highly speculative assets could trigger a regulatory backlash if associated ETFs contribute to market bubbles.
Frequently Asked Questions
What is a cryptocurrency ETF?
A crypto ETF is a tradable fund that tracks the price of one or more digital assets. It allows investors to gain exposure without directly purchasing or storing cryptocurrencies.
Which crypto is most likely to get an ETF next?
XRP, Solana, and Litecoin are among the top candidates based on analyst predictions and current application activity.
How do crypto ETFs benefit everyday investors?
They offer a familiar, regulated way to invest in digital assets through traditional brokerage accounts, reducing technical barriers and security risks.
Can an ETF approval influence the price of a cryptocurrency?
Yes, approval often leads to increased demand and positive market sentiment, which can drive short- and medium-term price appreciation.
Are multi-crypto ETFs available?
Yes, some firms already offer ETFs that hold a basket of cryptocurrencies, providing instant diversification within a single product.
What are the risks of investing in a crypto ETF?
Investors are still exposed to crypto market volatility, regulatory changes, and potential liquidity issues—especially with newer or less-established funds.
Conclusion: The Second Wave of Crypto ETFs Has Begun
The approval of Bitcoin and Ethereum ETFs laid a strong foundation for the next chapter of crypto adoption. Today, the market is poised for a new wave of products centered around major altcoins—a sign of the deepening integration between traditional finance and digital assets.
As asset managers compete to offer more diverse and innovative products, the focus will shift toward multi-coin offerings, staking mechanisms, and tokenization strategies. This could redefine how investors build and manage crypto portfolios in the years to come.
For those looking to stay ahead of these trends, it’s essential to monitor regulatory developments and market signals as the ETF landscape continues to evolve.