Bloomberg senior ETF analyst Eric Balchunas states that pending approval of altcoin-related exchange-traded funds (ETFs) could make cryptocurrencies "go absolutely wild" unless a major crash occurs.
He reveals that 14 altcoin-linked ETFs await SEC approval within the next 12 months, including funds tracking baskets of Solana (SOL), XRP, Hedera (HBAR), Litecoin (LTC), Bitcoin (BTC), and Ethereum (ETH).
Balchunas also forecasts the altcoin ETF list could triple in size within two months.
Favorable Regulatory Climate
Following the U.S. election results, ETF Store CEO Nate Geraci predicted rapid listings for spot crypto ETFs, noting issuers are "aggressively prepared" for regulatory shifts. Since then:
- Canary Capital filed for an HBAR ETF (November 12), surprising analysts who expected top-50 crypto selections.
- Bitwise registered a SOL trust (November 21), with NYSE applying for its hybrid BTC/ETH ETF days later.
👉 Explore how altcoin ETFs could reshape crypto investing
SEC’s Uncertain Timeline
Bloomberg’s James Seyffart suggests Solana ETFs may take two years for approval, cautioning the current administration might reject them. Notably, Cboe withdrew 19b-4 filings for VanEck/21Shares’ SOL ETFs in August.
Conversely, Litecoin ETFs face smoother prospects. Galaxy Digital’s Alex Thorn highlights LTC’s "fair launch" (no pre-mine/token sales) as reducing securities classification risks.
FAQ Section
Q: Which altcoins are most likely to get ETF approvals next?
A: SOL, LTC, and XRP lead the pipeline due to their market liquidity and regulatory clarity.
Q: Could political changes delay altcoin ETFs?
A: Yes. Administration shifts may alter SEC’s stance, especially for newer assets like SOL.
Q: How do altcoin ETFs differ from Bitcoin ETFs?
A: They track diversified crypto baskets, offering broader exposure beyond BTC/ETH.
👉 See why experts call 2025 the "year of altcoin ETFs"
Key Takeaways
- 14 altcoin ETFs await SEC decisions, potentially accelerating crypto adoption.
- LTC and HBAR ETFs may pioneer approvals due to perceived regulatory safety.
- Market volatility remains the wildcard—investors should monitor macro trends.