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Crypto ETF landscape: An overview of altcoins with ETF applications

Intermediate
Crypto
Mar 30, 2025
14 min read

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US president Donald Trump's return to office has ignited renewed institutional interest in altcoins, fueling a wave of altcoin spot exchange-traded fund (ETF) applications centered on these innovative digital assets. This surge reflects a growing recognition of altcoins as viable investment opportunities. 

In this article, we’ll take a deep dive into the dynamic altcoin ETF landscape, spotlight key altcoins that are drawing ETF proposals and discuss the potential market impact and regulatory challenges. 

Key Takeaways:

  • Following the success of recent Bitcoin and Ethereum Spot ETFs, asset managers are actively pursuing the creation of spot ETFs for altcoins like Solana, Litecoin, Polkadot and XRP, driven by growing investor demand and a more favorable regulatory climate.

  • The SEC's approval process involves extensive scrutiny of market surveillance, liquidity and custody measures, with some altcoins like Litecoin having a higher likelihood of approval due to their established status as commodities.

  • While the US market is seeing a surge in applications, countries such as Brazil have already approved spot altcoin ETFs, indicating rising global acceptance and mainstream integration of digital assets into traditional finance.

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What is an altcoin spot ETF application?

An altcoin spot ETF application is a formal request submitted to regulators to create an exchange-traded fund (ETF) that directly holds altcoins (cryptocurrencies other than Bitcoin) as underlying assets, allowing investors regulated exposure to the altcoins’ real-time market prices without owning the altcoins themselves.

How does an altcoin spot ETF application work?

The process of applying for such an ETF in the United States involves several detailed steps, primarily overseen by the Securities and Exchange Commission (SEC).

  • Choosing the listing exchange: The asset management firm proposing the ETF must partner with a national securities exchange (e.g., NYSE, Nasdaq-100, Cboe) on which the ETF will be listed. This exchange plays a key role in the application process.

  • Submission of Form 19b-4: The chosen exchange submits a Form 19b-4 to the SEC, proposing a rule change to list and trade the new altcoin spot ETF. This form details the specifics of the ETF, including its structure, the underlying asset (the altcoin), custody arrangements and measures to prevent fraudulent and manipulative practices.

  • SEC review: Upon receiving Form 19b-4, the SEC initiates a structured review process. The proposed rule change is published in the Federal Register, marking the start of the official review period. This publication opens the proposal for public comments, allowing stakeholders to provide feedback that can influence the SEC's decision-making process. The SEC has up to 240 days from the initial filing to make a final decision, with specific intervals (e.g., 45 days, 90 days) within which it can extend its review to gather more information or consider public comments.

During its review, the SEC assesses several critical factors to determine whether the altcoin is suitable for inclusion in an ETF. The agency examines the market surveillance capabilities of the exchange, ensuring it can effectively monitor trading activities to prevent fraud and manipulation. In addition, the SEC evaluates custody solutions to guarantee secure storage of the altcoin, protecting it against theft or loss. Finally, the agency considers the liquidity and market size of the altcoin, assessing its market maturity through indicators (such as trading volume and market capitalization) to ensure it can adequately support an ETF structure.

  • Potential outcomes: After the review, the ETF application may result in approval, enabling the ETF to be listed and traded on the exchange. Approval may be denied if the SEC identifies concerns, such as market manipulation or insufficient investor protections, or the review process may be delayed as the SEC extends its timeline to gather additional information or seek further public input.

Current altcoin spot ETF application landscape

Following the approval of Bitcoin Spot ETFs and Ethereum Spot ETFs in the United States in 2024, asset managers have expanded their focus to other cryptocurrencies. Major firms Grayscale Investments, Bitwise, VanEck and Canary Capital have filed applications with the US SEC for ETFs tied to cryptocurrencies such as XRP, Solana, Hedera and Litecoin. Analysts from Bloomberg Intelligence have assigned a 90% approval probability for a Litecoin ETF in 2025, with Dogecoin, Solana and XRP following at 75%, 70% and 65% likelihoods, respectively. 

In the international scene, Brazil's securities regulator, the Comissão de Valores Mobiliários (CVM), approved the world’s first Spot XRP ETF, the Hashdex Nasdaq XRP Index Fund. This ETF allows investors to gain direct exposure to XRP through Brazil's B3 stock exchange without the need to purchase and store the cryptocurrency themselves. 

Why is there a sudden rise in altcoin spot ETF applications?

Several factors have contributed to the surge in altcoin spot ETF applications.

  • Growing investor demand: Investors are increasingly seeking diversified exposure to the cryptocurrency market beyond Bitcoin and Ethereum, prompting asset managers to develop products that meet this demand.

  • Regulatory precedents: The approval of Bitcoin and Ethereum Spot ETFs has established a framework that asset managers are leveraging to propose ETFs for other cryptocurrencies.

  • Institutional adoption: Major financial institutions are increasingly participating in the cryptocurrency market, signaling maturity and stability, which encourages the development of new investment vehicles such as altcoin ETFs.

  • Changing regulatory environment: Political shifts, such as the pro-crypto stance of the current US administration, have nurtured a more favorable regulatory climate for cryptocurrency-based financial products. Industry figures anticipate that this supportive environment will lead to further approvals of crypto ETFs. 

An overview of altcoins with spot ETF applications

The growing interest in altcoin spot ETFs has led several asset managers in the US to file applications for a range of digital assets. Below is a detailed list of the altcoins currently targeted by spot ETF applications, along with the companies behind each filing.

Solana (SOL)

Solana is a high-performance blockchain platform renowned for its scalability, speed and low transaction costs achieved through its unique Proof of History (PoH) consensus mechanism. In February 2025, the SEC acknowledged several Spot Solana ETF applications from prominent asset managers, as follows.

  • VanEck filed the first Spot Solana ETF application with the SEC on Jun 27, 2024.

  • 21Shares followed with its own filing for a Spot Solana ETF on Jun 28, 2024.

  • Canary Capital applied for a Solana (SOL) Spot ETF on Oct 30, 2024.

  • Bitwise officially submitted its application on Nov 21, 2024.

  • Rex-Osprey: REX Shares, in collaboration with Osprey, applied for a Solana (SOL) Spot ETF on Jan 21, 2025.

  • Grayscale applied to convert its existing Solana Trust into a Spot ETF on Jan 28, 2025.

Currently under review, these applications collectively carry an estimated 70% likelihood of approval, though this outlook may be affected by the regulatory classification of SOL as a security. 

Litecoin (LTC)

Litecoin is a decentralized cryptocurrency launched in 2011 as a faster, lower-cost alternative to Bitcoin. Dubbed "digital silver," it uses a proof of work (PoW) consensus mechanism and serves primarily as a payment network.

Several asset managers have submitted applications for a Spot Litecoin ETF.

The SEC’s final decisions are expected by late 2025. Bloomberg analysts estimate a 90% chance of approval for Litecoin ETFs in 2025, due to Litecoin’s commodity classification and reduced regulatory risks as compared to other cryptocurrencies. Analysts also highlight that Litecoin’s technical similarities to Bitcoin are favorable factors in the ongoing review process.

Polkadot (DOT)

Polkadot’s decentralized blockchain platform is designed to enable interoperability between different blockchain networks. Pending DOT Spot ETF applications include the following.

  • 21Shares submitted an S-1 registration on Jan 31, 2025 to the SEC for a Spot Polkadot ETF, proposing to list it on the Cboe BZX Exchange with Coinbase as the custodian.

  • Grayscale Investments filed for a Spot Polkadot ETF on Feb 24, 2025, aiming to list it on the Nasdaq-100 under the ticker symbol "DOT".

The applications are under review by the SEC, and 21Shares recently updated its application in early March, 2025, indicating active collaboration with the SEC. 

Cardano (ADA)

Cardano is a third-generation blockchain platform that uses a proof of stake (PoS) consensus mechanism, making it more energy-efficient than PoW blockchains. It’s known for its rigorous, peer-reviewed development process and focus on sustainability, scalability and interoperability. 

Grayscale Investments filed the first-ever (and, so far, only) Spot Cardano ETF application on Feb 10, 2025 with the SEC, aiming to list the ETF on the New York Stock Exchange (NYSE). 

Grayscale's Spot Cardano ETF application is currently under review by the SEC, with the regulatory body acknowledging the filing on Feb 24, 2025. The SEC's decision is expected by August 2025. 

Hedera (HBAR)

Hedera Hashgraph is a decentralized public network that uses the novel Hashgraph consensus algorithm (based on a directed acyclic graph, or DAG) to offer high-speed, secure and energy-efficient transactions. It’s designed as an alternative to traditional blockchain systems, supporting applications across various industries like finance, gaming and healthcare. 

The following asset managers have submitted HBAR Spot ETF applications.

  • Canary Capital: Initially filed an S-1 form in November 2024, and submitted an amended version accompanied by a 19b-4 form on Feb 21, 2025.

  • Grayscale: Nasdaq filed a 19b-4 form on Feb 28, 2025 to list Grayscale's Spot Hedera (HBAR) ETF.

The SEC review process for the HBAR Spot ETFs has begun. It can take up to 240 days for a full response. However, HBAR isn’t considered a security by the SEC, which could potentially expedite the approval process for an HBAR Spot ETF. 

Chainlink (LINK)

Chainlink is a decentralized oracle network that helps connect smart contracts to real-world data, ensuring that these contracts can securely and reliably access external information. 

Although no asset managers have filed for a Spot ETF focused solely on Chainlink (LINK), the asset is gaining exposure through broader crypto ETF filings. For instance, Hashdex's crypto ETF, which also features major cryptocurrencies like Bitcoin and Ethereum, includes Chainlink in its portfolio. This ETF application was initially submitted to the SEC on Jun 24, 2024, with an amendment submitted on Nov 25, 2024, and is currently under review.

Dogecoin (DOGE)

Dogecoin is a decentralized, peer-to-peer cryptocurrency that originated as a satirical take on the burgeoning digital currency market. Despite its humorous beginnings, Dogecoin has developed a significant following and has been used in various charitable events and crowdfunding campaigns. 

Asset managers who have submitted applications for Dogecoin (DOGE) Spot ETFs include the following.

  • REX-Osprey: On Jan 21, 2025, REX Shares, in collaboration with Osprey Funds, filed an application for a Spot Dogecoin ETF. 

  • Bitwise Asset Management: On Jan 28 2025, Bitwise filed its S-1 and 19b-4 registration forms with the SEC to propose a Spot Dogecoin ETF. 

  • Grayscale Investments applied for a Spot Dogecoin ETF on Jan 31, 2025.

These applications are currently under review by the SEC, and a decision regarding Grayscale's application is anticipated by mid-October 2025. 

Avalanche (AVAX)

Avalanche is a decentralized, open-source Layer 1 blockchain platform developed by Ava Labs and launched in September 2020. It’s designed to support fast, scalable and secure decentralized applications (DApps) and smart contracts.

The following asset managers have submitted applications for Avalanche (AVAX) Spot ETFs.

These applications are currently under review by the SEC. 

Aptos (APT)

Aptos is a Layer 1 blockchain platform developed by Aptos Labs, founded in 2021 by former Meta (Facebook) employees Mo Shaikh and Avery Ching. Leveraging the Move programming language, initially created for Meta's Diem project, Aptos aims to deliver a scalable, secure, and efficient infrastructure for DApps. 

As of now, Bitwise Asset Management is the only asset manager that has filed for an APT Spot ETF. The application, submitted on Mar 5, 2025, is still pending with the SEC.

XRP (XRP)

XRP is the native digital asset of the XRP Ledger, an open-source blockchain designed to facilitate fast, low-cost and energy-efficient cross-border payments. XRP aims to provide a scalable alternative to traditional financial systems such as SWIFT. 

All of these applications are currently under review by the SEC, with possible approvals expected later in the year.

Sui Blockchain (SUI)

Sui Blockchain is a Layer 1 smart contract platform designed to enhance digital asset ownership by making transactions fast, secure and accessible. Its PoS consensus mechanism and use of the Move programming language enable Sui to support high-speed transactions and a wide range of DApps, positioning it as a scalable solution for various blockchain use cases. 

On Mar 17, 2025, Canary Capital Group filed an application with the SEC to launch an ETF tied to the spot price of SUI. This filing represents the first, and for now, only attempt to introduce a SUI-backed ETF in the United States.

The SEC has acknowledged receipt of Canary Capital's application, kicking off the regulatory review process. 

Movement Network (MOVE)

Movement Network is an Ethereum Layer 2 blockchain platform built to improve scalability and efficiency. It leverages the Move programming language for faster transaction speeds and lower costs, seeking to establish itself as a next-generation blockchain solution.

REX Shares and Osprey Funds jointly filed an application for an ETF designed to track the MOVE token. Submitted on Mar 10, 2025, this marks the first, and currently the only, application for a MOVE Spot ETF.

The SEC is currently reviewing the application, having confirmed receipt.

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Could this trend pave the way for crypto mainstream adoption?

The growing number of altcoin spot ETF applications and potential approvals could significantly impact the cryptocurrency landscape, potentially accelerating mainstream adoption. Here's how.

  • Increased accessibility: Spot ETFs offer a straightforward, regulated way for both big institutions and individual investors to tap into the crypto market without having to buy or store digital currencies directly. This user-friendly approach could help open the door to a much wider audience.

  • Institutional involvement: Approval of altcoin spot ETFs could attract institutional investors, such as pension funds and mutual funds, who have been hesitant to enter the crypto market due to regulatory uncertainties. Their participation could inject significant capital, enhancing market liquidity and stability.

  • Legitimizing cryptocurrencies: Regulatory approval of crypto ETFs is a vote of confidence from official bodies. This recognition not only boosts the credibility of digital assets, but may also encourage more governments and financial institutions to embrace and integrate crypto into their systems.

Historical data suggests that significant regulatory milestones, such as ETF approvals, often lead to market rallies. For instance, following the SEC's approval of Bitcoin Spot ETFs in early 2024, Bitcoin's price surged over 120%, reaching a peak of $100,000. This rally contributed to the overall cryptocurrency market cap’s climb to approximately $3.5 trillion. Similarly, spot ETF approvals could trigger a bull run, as increased demand drives up prices. With easier access to crypto investments, more individuals and institutions may enter the market, further driving adoption and innovation within the ecosystem.

While the outlook is optimistic, it's essential to approach these developments with caution.

Cryptocurrencies remain highly volatile, and their market movements can be unpredictable. Investors should conduct thorough research and consider their risk tolerance before investing in cryptocurrencies or related products.

The bottom line

The altcoin Spot ETF landscape is rapidly expanding as asset managers like Grayscale, Bitwise, 21Shares and Canary Capital file applications for digital assets beyond Bitcoin and Ethereum. With ETFs targeting Solana, Litecoin, Polkadot, Cardano and other altcoins, these initiatives aim to enhance market accessibility and institutional participation, though final approval remains subject to regulatory review.

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