The cryptocurrency investment landscape could be on the verge of a significant shift as expectations grow for the first wave of altcoin exchange-traded funds (ETFs) to gain regulatory approval. With over 72 applications currently under review by the U.S. Securities and Exchange Commission (SEC), the potential greenlighting of spot ETFs for major altcoins like Solana, Avalanche, XRP, and Dogecoin is capturing increasing attention from institutional investors and retail traders alike.
According to Bloomberg senior ETF analyst Eric Balchunas, the odds are looking favorable—Avalanche’s ETF has a 75% chance of approval, while Dogecoin’s could climb as high as 80%. These figures reflect growing confidence that the SEC may extend its ETF approvals beyond Bitcoin and Ethereum, especially as market infrastructure matures and investor demand intensifies.
Expanding Beyond Bitcoin and Ethereum
Asset managers who have successfully launched Bitcoin and Ethereum ETFs are now turning their focus toward diversifying into alternative cryptocurrencies. Firms are submitting proposals for spot ETFs tied to high-market-cap, widely adopted altcoins such as Solana (SOL), XRP, Cardano (ADA), and Litecoin (LTC). This strategic expansion signals a broader institutional embrace of digital assets beyond the two largest by market capitalization.
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While the SEC has not yet provided definitive timelines, industry experts anticipate that the first approvals could arrive in the fourth quarter of 2025. However, given the agency’s historically cautious stance, delays remain likely. Recent postponements include Franklin Templeton’s spot ETF applications for XRP and Dogecoin, as well as several Ethereum staking ETFs—all now under extended review.
Solana and XRP in the Spotlight
Among the most closely watched applications are those centered on Solana and XRP, both of which have seen strong ecosystem growth and developer activity. There are currently 19 separate ETF filings involving XRP, though they vary in structure and submission readiness. Despite regulatory uncertainty, XRP has maintained price stability around $2.24, suggesting resilient market confidence.
Solana, meanwhile, continues to gain momentum due to its high-speed blockchain and thriving decentralized finance (DeFi) and NFT ecosystems. Polymarket data shows an 83% probability of a Solana ETF being approved by year-end—a figure slightly below Bloomberg’s optimistic 90% forecast but still indicating strong market sentiment.
Although no official decision dates have been announced, the accumulation of filings suggests that issuers are preparing for eventual approval. The inclusion of staking mechanisms in future ETF models—potentially applicable to Solana and Ethereum—could further enhance yield appeal for investors.
Challenges for Niche Projects
Not all altcoins face equal prospects. More specialized or lower-visibility projects like Polkadot (DOT) and Hedera Hashgraph (HBAR) face steeper hurdles in gaining ETF approval. Limited trading volume, less institutional interest, and complex governance models reduce their near-term viability in the eyes of regulators.
The SEC typically prioritizes assets with clear use cases, transparent supply metrics, and established markets—criteria that favor larger, more liquid cryptocurrencies. As such, while innovation continues across the broader altcoin space, only a select few are likely to break through the regulatory threshold in 2025.
Market Impact Remains Uncertain
Historical precedent offers mixed signals about how ETF approvals might affect prices. After the launch of spot Bitcoin ETFs in January 2024, BTC experienced prolonged sideways movement before resuming its upward trend months later. Similarly, Ethereum saw muted short-term price action following its ETF debut.
This suggests that while ETF approvals bring legitimacy and improved access, their immediate impact on valuations may be limited. Long-term effects—such as increased liquidity, broader adoption, and integration with traditional finance—are likely more significant.
For altcoins that have languished at multi-year lows, however, even symbolic approval could reignite investor optimism. Assets like Cardano, Litecoin, and XRP are seeing rising odds of approval—some estimates suggest up to 87%—which could serve as catalysts for renewed capital inflows.
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FAQ: Altcoin ETFs in 2025
Q: What is an altcoin ETF?
A: An altcoin ETF is an exchange-traded fund that tracks the price of a cryptocurrency other than Bitcoin or Ethereum. It allows investors to gain exposure to assets like Solana or XRP through traditional brokerage accounts without holding the underlying coin directly.
Q: Why does the SEC delay altcoin ETF decisions?
A: The SEC evaluates whether the underlying market is resistant to manipulation, has sufficient liquidity, and provides reliable pricing data. For many altcoins, proving these criteria takes time, leading to extended review periods.
Q: Will staking be included in future altcoin ETFs?
A: There is growing interest in incorporating staking rewards into ETF structures, particularly for proof-of-stake coins like Solana and Ethereum. While no staking-enabled ETF has been approved yet, it remains a key area of development.
Q: How many altcoin ETF applications are currently pending?
A: Over 72 altcoin ETF proposals are under review by the SEC, covering a range of assets including Solana, XRP, Dogecoin, and Cardano.
Q: Could multiple altcoin ETFs be approved at once?
A: Yes. Similar to the Bitcoin ETF rollout, where several providers launched funds simultaneously after approval, we may see a wave of altcoin ETFs enter the market together once initial hurdles are cleared.
Q: Do ETF approvals guarantee price increases?
A: Not necessarily. While approvals add credibility and may attract institutional capital, historical data shows that prices can remain flat or volatile in the short term. Long-term performance depends on broader market conditions and adoption trends.
The path toward altcoin ETF approvals is still unfolding, but momentum is building. With strong interest from asset managers, rising investor demand, and improving regulatory clarity, 2025 could mark a turning point for digital asset adoption in traditional finance.
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As the SEC continues its evaluations, markets will remain watchful for signals—delay patterns, public statements, or unexpected filings—that could foreshadow a breakthrough. For now, Solana and Avalanche lead the pack in approval odds, but the final outcome will depend on both regulatory strategy and market resilience.