What is the progress of the various altcoin ETF applications?
- The hunt for other altcoin ETFs
- What is the current progress of these applications?
- Our expectations for the altcoin ETFs
For years, the digital assets market eagerly anticipated the integration of digital assets into traditional financial markets. This milestone was finally reached in 2024 with the approval of the first Bitcoin ETF in the U.S., followed shortly by Ethereum, making it the first altcoin to gain access to U.S. financial markets.
Although both ETFs faced a challenging start marked by net outflows, Bitcoin and Ethereum quickly reversed course, attracting billions in investments. To date, they have accumulated net inflows of $35.6 billion and $2.5 billion, respectively.
The success of these ETFs, combined with their relatively low effort for asset managers and strong profitability, has sparked growing interest in expanding the range of digital asset investment products.
The hunt for other altcoin ETFs
Shortly after the launch of the Ethereum ETF, asset managers swiftly turned their attention to other altcoins. However, the Securities and Exchange Commission (SEC), under the leadership of Gary Gensler, quickly rejected incoming applications. Gensler, widely regarded as an adversary of the digital assets industry, led an aggressive regulatory stance during the Biden administration, seeking to classify nearly all digital assets as securities.
In November, Donald Trump’s presidential victory sparked a positive reaction in the digital assets market, as he had made several pro-crypto promises—including the removal of Gary Gensler. The market didn’t have to wait long, as Gensler soon announced his resignation. With Trump set to appoint a new SEC Chair, expectations of a more crypto-friendly regulatory environment have surged, leading to a flood of new altcoin ETF applications.
These applications include altcoins such as Solana, Dogecoin, XRP, Litecoin, Hedera, Cardano, Polkadot, and SUI.
What is the current progress of these applications?
The race for altcoin ETFs continues to accelerate, with multiple applications currently pending with the U.S. Securities and Exchange Commission (SEC). Below is an update on the progress of these applications and the estimated likelihood of approval, according to Bloomberg analysts.
Solana (SOL)
Bitwise, VanEck, 21Shares, Canary Capital, Grayscale, and Franklin Templeton have all filed for spot Solana ETFs. Of these, five applications have been acknowledged by the SEC, officially initiating the review process and triggering a 240-day decision deadline. Bloomberg analysts estimate a 70% chance of approval in 2025.
SEC official deadline: Mid-October 2025
Dogecoin (DOGE)
Several asset managers have entered the race for a Dogecoin ETF, with multiple applications already acknowledged by the SEC. However, on March 12th, the SEC delayed its initial decision, keeping the market in suspense. Bloomberg analysts estimate a 75% chance of approval by year-end.
XRP
Like Dogecoin, several firms have applied for an XRP ETF. While the SEC has acknowledged these applications, it has also postponed its initial decision. Analysts predict a 65% chance of approval in 2024.
SEC official deadline: Mid-October 2025
Litecoin (LTC)
Litecoin is following a similar trajectory as Dogecoin and XRP, though analysts give it a 90% chance of approval, making it the most likely candidate among altcoin ETFs.
SEC official deadline: Mid-October 2025
Hedera (HBAR)
Grayscale and Canary Capital are the only firms currently pursuing a Hedera ETF. Canary Capital’s application was acknowledged in February, while Grayscale’s was recognized in March. No further developments have been reported.
SEC official deadline: End of November 2025
Cardano (ADA)
Grayscale is the sole asset manager that has applied for a Cardano ETF, and the SEC has acknowledged the application. However, analysts find it difficult to determine the likelihood of approval at this stage.
SEC official deadline: End of October 2025
Polkadot (DOT)
21Shares is currently the only firm pursuing a Polkadot ETF. Like Cardano, the application has been acknowledged by the SEC, but its approval prospects remain uncertain.
SEC official deadline: Mid-November 2025
Sui (SUI)
Sui is the newest entrant in the ETF race. U.S. asset manager Canary Capital applied on March 17th, but no further progress has been made yet.
SEC official deadline: T.B.A
Our expectations for the altcoin ETFs
We believe the market will see the introduction of one or more altcoin ETFs in 2025, marking a significant milestone in the evolution of altcoins and paving the way for further offerings.
However, an important consideration remains: an increase in supply does not necessarily equate to demand for these altcoin ETFs. Unlike Bitcoin and Ethereum, many of these assets are still relatively new and have yet to fully mature. The true test will come once these instruments launch, determining whether investors are genuinely willing to allocate capital to them.