The landscape of cryptocurrency investment continues to evolve at a rapid pace, with recent insights suggesting that issuers of crypto ETFs may soon venture beyond just spot bitcoin and ether funds.
According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, the likelihood of the U.S. Securities and Exchange Commission (SEC) approving a variety of spot altcoin ETFs by the end of 2025 has risen to 75% or greater. This is encouraging news for investors looking to diversify their portfolios in the burgeoning world of digital assets.
At present, the SEC is reviewing eight different proposals for spot funds, which include ETFs linked to notable cryptocurrencies such as Solana (SOL), Litecoin (LTC), Dogecoin (DOGE), XRP, Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), and Hedera (HBAR). Balchunas and Seyffart highlight that index and basket-style ETFs, which combine multiple cryptocurrencies, stand the best chance of gaining approval, with their odds pegged at an impressive 90%.
As the September landscape unfolds, key deadlines loom on the horizon. One significant date is July 2, when the SEC is expected to respond to proposals filed by prominent firms including Grayscale, Bitwise, Franklin Templeton, and Hashdex for basket-style funds. Single-asset ETF decisions—pertaining to assets like SOL, DOGE, XRP, and ADA—are anticipated in October, with subsequent rulings expected by November and December. Importantly, these deadlines are final, compelling the SEC, which has a history of delaying outcomes, to issue conclusive rulings.
Moreover, there are indications that some issuers are looking to launch funds tracking smaller-cap tokens, such as SUI, Trump Coin (TRUMP), and Melania Coin (MELANIA). However, these proposals have yet to reach the formal 19b-4 stage, which triggers an official SEC review.
Seyffart suggested that SUI’s chances of approval may be on par with existing altcoin filings. “I need to dive in a bit more for an official odds number, but I’d assume it would have similar prospects to the other altcoin ETFs,” he remarked, reflecting the ongoing analysis surrounding these proposals.
The potential for altcoin ETFs has gained a more optimistic outlook following the appointment of crypto-friendly Paul Atkins as SEC chairman during Donald Trump’s presidency. Atkins emphasized that innovation within the sector “has been stifled” and that the current regulatory framework “badly needs attention.” This sentiment may foster a more conducive environment for the approval of altcoin ETFs, signaling a new era of opportunity for investors in the cryptocurrency space.
