First came Bitcoin, followed by Ethereum, and the floodgates could be open to numerous ETFs being approved soon. With Bitcoin spot ETFs gaining billions in institutional inflows and Ethereum ETFs gaining regulatory approval in mid-2025, the market is gearing up for the next big shift: which cryptocurrencies could be next in line for ETF exposure?
Some altcoins like Solana, Polygon, XRP, Chainlink, and Avalanche ETFs are being speculated to be approved. Although there is no official announcement of these tokens’ ETF being approved by the SEC, however, asset managers are filing for these ETFs, believing that the pro-crypto Trump regime might give them the green light.
What is a crypto ETF?
An ETF stands for Exchange Traded Fund. It is an investment basket that you can buy and sell just like stocks. This basket could, for instance, contain Bitcoin, Ethereum, Gold, and some other commodity. So when you purchase the ETF, you buy a share of everything that the ETF consists of.
Analysts’ views about the approval of crypto ETFs
Bloomberg ETF analyst James Seyffart and his fellow analyst Eric Balchunas stated in an X post that XRP, Solana, and Litecoin ETFs have a 95% chance of being approved. They stated that the SEC’s engagement was very positive, and hence, the window for these ETFs to be approved was high.
How the approval of ETFs could impact the larger crypto market
Increased institutional investment:
Once ETF’s are approved there will be many institutions that will be drawn towards it. Institutions like, pension funds, asset managers, hedge funds, and banks. Institutions typically avoid direct crypto exposure due to risks like custody, regulation, or volatility. With ETFs, they can invest in crypto the safe way just like they do stocks or bonds. This brings billions of dollars in new capital into the crypto ecosystem.
Legitimacy and Mainstream Adoption
When regulators approve a crypto ETF, it means that the asset has met all the requirements, such as legal, security, and compliance checks. This legitimizes the asset in the eyes of traditional finance and the general public. It encourages platforms like banks, financial advisors, and fintech apps to offer crypto ETFs to their users.
Potential Market Rallies or Inflows
When the U.S. Bitcoin spot ETFs launched in January 2024 it caused a huge rally, and brought over $15 billion in inflows within a few months. Usually, the time span for the SEC to approve the ETF is 240 days. Based on the date, the ETF filings were submitted to the regulatory body, it is widely expected that the ETFs might be approved by October 2025, at the latest.
