The approval of altcoin ETFs in the United States is gaining momentum in 2025, with expectations that several funds will be approved this year. After the approval of Ethereum ETFs in 2024, the market is awaiting the inclusion of other cryptocurrencies such as Solana (SOL), XRP, Litecoin (LTC), Hedera (HBAR), and Dogecoin (DOGE).
Current Situation of Altcoin ETFs
Currently, the U.S. Securities and Exchange Commission (SEC) is reviewing more than a dozen applications for altcoin-based ETFs. Despite some delays, analysts, such as James Seyffart from Bloomberg, maintain an optimistic outlook for approvals still in 2025, especially for Litecoin, Dogecoin, Solana, and XRP ETFs.
The recent classification of proof-of-work cryptocurrencies, such as Bitcoin and Litecoin, as commodities by the SEC paves the way for the approval of ETFs related to these assets. Additionally, the withdrawal of the SEC's case against Ripple strengthens the chances of approval for an XRP ETF.
Outlook for 2025
Eric Balchunas, an analyst at Bloomberg, predicts that the number of altcoin ETFs under review could triple in the coming months, with over 40 applications in progress. He emphasizes that, unless there is a significant market pullback, the approval of these ETFs could make the crypto market 'quite lively'.
The possible appointment of Paul Atkins as the new SEC chairman, known for a more favorable stance towards cryptocurrencies, could accelerate the approval process for these ETFs.
Market Impact
Although the approval of altcoin ETFs could increase institutional exposure to these assets, analysts warn that initial demand may be limited. More experienced investors already hold these cryptocurrencies directly, and ETFs may mainly attract retail investors.
The expectation is that altcoin ETFs will attract between $30,394,781,705,500 million and $30,394,781,705 billion in investments, a significantly lower amount compared to the over $30,394,781,705,100 billion raised by Bitcoin ETFs in the U.S.
