Current Status of the Altcoin ETF Craze
With the advent of a more cryptocurrency-friendly U.S. government and the departure of the U.S. Securities and Exchange Commission’s ### Gary Gensler, asset management firms are now launching a broader range of exchange-traded funds (ETFs) covering altcoins, meme coins, and even NFTs.
Key Points
BTC and ETH spot ETFs have attracted billions of dollars in institutional inflows, legitimizing cryptocurrencies within TradFi.
Asset management companies are actively applying for ETFs covering Solana, XRP, Litecoin, Cardano, and more.
ETFs for memecoins like DOGE, TRUMP, BONK, and PENGU have also been submitted.
Bloomberg and Polymarket estimate the approval probabilities for assets such as SOL, XRP, and LTC to be between 75% and 90%, while the chances for SUI, APT, and meme-based funds are very low.
There is a division in the crypto space. Perspectives vary from liquidity to views on L1 supremacy. However, if there is one thing that can unite all crypto enthusiasts, it is the hope for mainstream acceptance of cryptocurrencies.
Between 2024 and 2025, as cryptocurrency ETFs gain approval and expand rapidly, the dream of mainstream acceptance for cryptocurrencies takes a significant step forward.
For the first time, investors can directly invest in various digital assets through traditional brokerage accounts, without the need for complex crypto wallets or exchanges.
Institutional investors, who had previously hesitated due to regulatory uncertainty, poured billions of dollars into Bitcoin and Ethereum ETFs within weeks of their launch. The impact was immediate. Bitcoin prices soared to new all-time highs, and the Ethereum ETF was quickly approved. These ETFs provided traditional financial participants with a more convenient investment channel and enhanced market liquidity. This also set a precedent for regulatory approval of other cryptocurrency ETFs.
Now, with Gary Gensler stepping down from the U.S. Securities and Exchange Commission ### and the U.S. government being more friendly towards cryptocurrencies, asset management firms are seizing the opportunity to apply for more altcoin ETFs, such as Solana and Ripple, as well as memecoins like Dogecoin, BONK, and Trump Memecoin.
This article provides a comprehensive overview of the current status of the cryptocurrency ETF craze.
Bitcoin ETF Lays the Foundation for the Market
For a long time, Bitcoin has represented cryptocurrency, and in 2024, with the approval of the first U.S. spot Bitcoin ETFs, Bitcoin officially enters the mainstream financial system. Although Bitcoin futures ETFs have existed since 2021, the launch of spot ETFs marks a watershed moment, as investors can directly hold actual Bitcoin assets rather than derivative contracts.
Within just a few days of trading, spot Bitcoin ETFs attracted billions of dollars in inflows. This influx significantly enhanced Bitcoin’s liquidity and solidified its status as a legitimate asset class alongside traditional commodities like gold.
As multiple asset management companies launched competitive Bitcoin ETFs, the market quickly became a battleground for investor attention. While BlackRock’s iShares Bitcoin Trust dominated early inflows, companies like Fidelity, ARK Invest, and VanEck also garnered significant participation.
By 2025, several large asset management firms have launched spot Bitcoin ETFs. Here are details of the major funds and their Bitcoin holdings.
Key Differences Between Futures Bitcoin ETFs and Spot Bitcoin ETFs:
Futures Bitcoin ETFs (e.g., BITO): Hold Bitcoin futures contracts from the Chicago Mercantile Exchange rather than actual Bitcoin. Due to contract rollovers, tracking errors can easily occur.
Spot Bitcoin ETFs (e.g., IBIT): Directly hold Bitcoin, allowing for precise tracking of Bitcoin’s market price.
Ethereum ETF
Following the success of Bitcoin ETFs, the next significant milestone in the cryptocurrency ETF space is the launch of Ethereum ETFs. While Bitcoin is often regarded as “digital gold,” Ethereum is the backbone of the DeFi and smart contract ecosystem.
Initially, regulators hesitated to approve Ethereum ETFs. However, as the U.S. SEC approved spot Bitcoin ETFs in early 2024, the path for Ethereum became clearer.
By May 2024, multiple Ethereum futures ETFs received regulatory approval, marking another watershed moment for cryptocurrency adoption. The spot Ethereum ETF was approved in July 2024. In the months leading up to the approval, Ethereum’s price broke the $4,000 threshold, mirroring Bitcoin’s earlier surge this year.
By 2025, Ethereum spot ETFs collectively held a substantial amount of ETH, making them one of the largest institutional investment vehicles for the asset.
As of the time of writing, nearly 3 million ETH are held by ETFs, with institutional participation in ETH reaching new heights.
Altcoin ETFs are on the Horizon
With the solid establishment of spot Bitcoin and Ethereum ETFs, asset management companies are now turning their attention to a broader cryptocurrency ecosystem.
Encouraged by the U.S. SEC’s increasingly open attitude toward cryptocurrencies and the ongoing improvements in market regulatory structures, asset management companies are submitting a batch of altcoin ETF applications. These proposals aim to attract investors to popular tokens such as Litecoin, XRP, Solana, Dogecoin, Cardano, and more.
Although none of the altcoin ETFs have been approved in the U.S. yet, several are currently under active review, and regulatory attitudes are changing. Analysts and industry insiders believe that once the first altcoin ETF is approved, others will quickly follow suit. This is very similar to the domino effect seen during the approvals of Bitcoin and Ethereum.
Solana (SOL) ETF
Solana’s popularity has soared over the past year, making it one of the most sought-after altcoin ETF candidates. With a robust DeFi ecosystem, Solana is considered Ethereum’s strongest competitor in the realm of smart contracts.
However, a key regulatory hurdle remains: whether Solana is classified as a security. Ongoing litigation and classification debates may delay the SEC’s decision. Nevertheless, the infrastructure is already being formed—DTCC (Depository Trust & Clearing Corporation) has listed two Solana futures ETFs (SOLZ, SOLT), while the Chicago Mercantile Exchange is also preparing to launch SOL futures contracts in 2025.
VanEck Solana Trust
Submission Date: June 2024
Details: VanEck has filed an S-1 registration statement with the SEC to launch a Solana spot ETF aimed at directly tracking the price of SOL. This is the first application for a Solana spot ETF in the U.S.
21Shares Core Solana ETF
Submission Date: June 2024
Details: Following in VanEck’s footsteps, 21Shares submitted an S-1 document to the SEC to apply for a Solana spot ETF, which will be listed on the Cboe BZX exchange.
Bitwise Solana ETF
Submission Date: November 2024
Details: Bitwise initially applied to establish a statutory trust for the Solana ETF in Delaware, later withdrew the application, and refiled an S-1 document with the SEC.
Grayscale Solana ETF (Spot ETF Conversion)
Submission Date: January 2025
Details: Grayscale has submitted an application to the SEC to convert its existing Solana Trust (GSOL) into a spot ETF, which will be listed on the New York Stock Exchange Arca. This application is based on its $134 million assets under management trust.
Canary Solana ETF
Submission Date: Late 2024 to Early 2025
Details: Canary Capital has submitted an S-1 document for a Solana spot ETF to the SEC. This comes at a time when interest in altcoin ETFs is surging following Trump’s victory.
Franklin Templeton Solana ETF
Submission Date: March 2025
Details: Franklin Templeton, managing over $15 trillion in assets, has submitted S-1 and 19b-4 forms to the SEC, planning to launch a spot Solana ETF on the Cboe Options Exchange BZX, making it the sixth large institution to apply for a U.S. spot SOL ETF.
According to Bloomberg Industry Research analysts, the likelihood of Solana ETF approval is high (75%).
Potential Impact: Analysts predict that if the ETF is approved, it will bring in $3 billion to $6 billion in inflows.
XRP (Ripple) ETF
XRP faces a unique challenge: its legal status. Despite XRP’s partial legal victories in 2023, the SEC’s final stance on whether XRP constitutes a security remains unclear. However, the submission of numerous relevant documents in early 2025 indicates optimism that legal clarity is forthcoming, or at least sufficient to approve exchange-traded funds (ETFs).
Bitwise XRP ETF
Submission Date: October 2024
Details: Bitwise Asset Management has submitted an S-1 registration statement to the SEC, marking the first formal proposal for a U.S. XRP ETF.
Canary Capital XRP ETF
Submission Date: October 2024
Details: Canary Capital, founded by former Valkyrie Funds co-founder Steven McClurg, has submitted an S-1 registration document for a spot XRP ETF to the SEC.
21Shares Core XRP ETF
Submission Date: November 2024
Details: Swiss cryptocurrency investment firm 21Shares has submitted an S-1 registration document to the SEC to launch a spot XRP ETF.
WisdomTree XRP ETF
Submission Date: December 2024
Details: Global asset management company WisdomTree has submitted an S-1 registration document to the SEC to launch a spot XRP ETF, which will be listed on the Cboe BZX exchange.
Grayscale XRP ETF (Spot ETF Conversion)
Submission Date: January 2025
Details: Grayscale Investments has submitted an application to the SEC to convert its existing XRP Trust (with $16.1 million in assets as of January 2025) into a spot ETF, which will be listed on the New York Stock Exchange Arca.
CoinShares XRP ETF
Submission Date: January 2025
Details: European cryptocurrency investment firm CoinShares has submitted an S-1 listing application to the SEC to launch a spot XRP ETF.
ProShares XRP ETF
Submission Date: January 17, 2025
Details: ProShares has submitted an S-1 listing application to the SEC for a spot XRP ETF, along with three other XRP-related investment products (details undisclosed).
Teucrium XRP ETF
Submission Date: January 21, 2025
Details: Teucrium has submitted an S-1 listing application to the SEC for a spot XRP ETF.
MEMX XRP ETF
Submission Date: February 2025 (exact date undisclosed)
Details: The U.S.-based exchange MEMX has submitted an application to the SEC to launch an XRP ETF under the commodity trust category.
Volatility Shares XRP ETF
Submission Date: March 10, 2025
Details: Volatility Shares has submitted an S-1 listing application to the SEC for a spot XRP ETF, aiming to directly track XRP’s price.
Franklin Templeton XRP ETF
Submission Date: March 11, 2025
Details: Franklin Templeton (managing over $15 trillion in assets) has submitted S-1 and 19b-4 forms to the SEC to launch a spot XRP ETF, with Coinbase Custody serving as the custodian.
Will the XRP ETF get approved? The likelihood is low (Bloomberg analysts predict a 65% approval rate). However, according to Polymarket data, the approval likelihood is higher at 81%.
Potential Impact: JPMorgan analysts predict that if the XRP ETF is approved, it will attract $4 billion to $8 billion in ETF inflows, significantly enhancing XRP’s market value and credibility.
Litecoin (LTC) ETF
If Bitcoin is “digital gold,” then Litecoin is “digital silver.”
Litecoin has been one of the oldest and most actively traded cryptocurrencies on the market. Launched by Charlie Lee in 2011, Litecoin aims to offer faster transaction speeds and lower fees than Bitcoin, making it an ideal choice for everyday transactions.
Canary Capital Litecoin ETF
Submission Date: