The U.S. crypto landscape is undergoing a seismic shift. With a more crypto-friendly administration in power and former SEC Chair Gary Gensler stepping down, the regulatory climate appears to be warming. This evolving environment has emboldened major asset managers to file for a new wave of exchange-traded funds (ETFs) — not just for Bitcoin and Ethereum, but for altcoins, memecoins, and even NFT-based assets.
While Bitcoin and Ethereum spot ETFs have already revolutionized institutional access to digital assets, 2025 could mark the dawn of the altcoin ETF era. Investors may soon gain regulated, brokerage-accessible exposure to assets like Solana (SOL), XRP, Litecoin (LTC), and even Dogecoin (DOGE) — all without managing private keys or navigating crypto exchanges.
This article explores the current state of pending altcoin ETF applications, analyzes approval probabilities, and examines the potential market impact of each.
Bitcoin ETFs: The Foundation of Institutional Adoption
Bitcoin has long been the face of cryptocurrency, but its full integration into traditional finance began in 2024 with the approval of the first U.S. spot Bitcoin ETFs. Unlike Bitcoin futures ETFs (such as BITO), which track derivatives contracts and suffer from roll yield decay, spot Bitcoin ETFs like IBIT and FBTC hold actual BTC in custody.
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This direct ownership model eliminates tracking error and provides a transparent, regulated pathway for pension funds, hedge funds, and retail investors alike. Within days of launch, these ETFs attracted billions in inflows, reinforcing Bitcoin’s status as a legitimate asset class — often compared to digital gold.
As of 2025, major financial institutions including BlackRock, Fidelity, VanEck, and ARK Invest offer competitive spot Bitcoin ETFs. Their collective holdings now represent a significant portion of the circulating supply, enhancing market depth and stability.
The success of Bitcoin ETFs set a crucial precedent: if the SEC could approve a spot ETF for the most prominent cryptocurrency, the door was now open for others.
Ethereum ETFs: Bridging DeFi and Traditional Finance
Following Bitcoin’s lead, Ethereum became the next major milestone. While Bitcoin is often viewed as a store of value, Ethereum powers decentralized applications, smart contracts, and the entire DeFi ecosystem.
Regulatory hesitation delayed Ethereum ETF approvals, but the greenlight for Bitcoin spot ETFs cleared much of the uncertainty. In May 2024, Ethereum futures ETFs were approved, followed by spot Ethereum ETFs in July 2024.
By early 2025, these ETFs held nearly 3 million ETH, marking unprecedented institutional adoption. The approval validated Ethereum’s role not just as a speculative asset, but as critical infrastructure in the digital economy.
This momentum has fueled expectations that other large-cap altcoins could follow a similar path — especially those with established networks, liquidity, and developer activity.
The Rise of Altcoin ETF Applications
With Bitcoin and Ethereum now firmly embedded in traditional markets, asset managers are turning their attention to the broader crypto ecosystem. Dozens of new ETF filings have been submitted for altcoins such as Solana, XRP, Litecoin, Cardano, and even memecoins like DOGE and BONK.
Although no altcoin ETF has been approved yet, the sheer volume of applications — many from reputable firms like Grayscale, Bitwise, VanEck, and Franklin Templeton — signals growing confidence in regulatory acceptance.
Analysts predict a domino effect: once the first altcoin ETF is approved, others will quickly follow. The key factors influencing approval include:
- Market maturity and liquidity
- Regulatory clarity on asset classification (security vs. commodity)
- Existence of regulated futures markets (e.g., CME listing)
- Custodial infrastructure
Let’s examine the most promising candidates.
Solana (SOL) ETF: High Approval Odds
Solana has emerged as one of the strongest contenders for the first altcoin ETF. Its high-speed blockchain and thriving DeFi and NFT ecosystems position it as a top Ethereum competitor.
However, a major hurdle remains: whether SOL is classified as a security. Ongoing legal debates could delay SEC approval. That said, infrastructure is already in place — DTCC has listed Solana futures ETFs (SOLZ, SOLT), and CME is preparing to launch SOL futures in 2025.
Multiple firms have filed for spot SOL ETFs:
- VanEck Solana Trust (June 2024)
- 21 Shares Core Solana ETF (June 2024)
- Grayscale Solana ETF conversion (January 2025)
- Franklin Templeton Solana ETF (March 2025)
Bloomberg analysts estimate a 75% chance of approval. If greenlit, inflows could reach $3–6 billion, significantly boosting SOL’s price and credibility.
XRP ETF: Legal Uncertainty Lingers
XRP’s path is complicated by its ongoing legal battle with the SEC. While Ripple won a partial victory in 2023, the SEC has not fully clarified XRP’s status as a security or commodity.
Despite this, nine firms — including Bitwise, Grayscale, ProShares, and Franklin Templeton — have filed for XRP spot ETFs since late 2024.
Approval odds are mixed: Bloomberg estimates 65%, while Polymarket suggests 81%. If approved, analysts project $4–8 billion in inflows, which could dramatically elevate XRP’s market position.
Litecoin (LTC) ETF: The "Digital Silver" Favorite
Often dubbed “digital silver” to Bitcoin’s “digital gold,” Litecoin has one of the longest track records among cryptocurrencies. Launched in 2011 by Charlie Lee, LTC offers faster transactions and lower fees than BTC.
Its longevity, liquidity, and clear use case make it a strong candidate for early approval.
Key filings include:
- Canary Capital Litecoin ETF (October 2024)
- Grayscale Litecoin Trust conversion (January 2025)
- CoinShares Litecoin ETF (January 2025)
Analysts assign LTC the highest approval probability — up to 90% in 2025. An ETF would likely boost adoption, liquidity, and price stability.
Cardano (ADA), Avalanche (AVAX), and Emerging L1s
While ADA and AVAX have strong communities and technical foundations, their lack of established futures markets may delay SEC approval.
- Grayscale Cardano Trust filed for ETF conversion in February 2025 (65% approval odds on Polymarket).
- VanEck Avalanche ETF was filed in March 2024 but remains in early stages.
These approvals may hinge on precedents set by SOL or LTC.
Memecoin ETFs: A Regulatory Tightrope
Even memecoins are entering the ETF arena — a move that tests the boundaries of financial regulation.
Dogecoin (DOGE) ETF: Most Likely Memecoin Candidate
DOGE stands out due to its high liquidity, widespread exchange support, and cultural staying power. Filings from Grayscale, Bitwise, and Rex Shares suggest serious institutional interest.
Bloomberg analyst Eric Balchunas estimates a 75% chance of approval. If successful, it could legitimize memecoins as investable assets.
Trump (TRUMP), BONK, and PENGU ETFs: Long Shots
ETFs for politically themed or niche memecoins face steep odds:
- The Trump Memecoin ETF (Rex Shares) is widely seen as symbolic or promotional due to its political nature.
- BONK and PENGU filings reflect speculative interest in Solana-based culture tokens.
- The PENGU ETF is particularly notable — it would hold both the PENGU token and actual NFTs from the Pudgy Penguins collection.
The SEC has never approved an ETF holding non-fungible assets, raising questions about valuation and custody. Approval remains unlikely in the near term.
Frequently Asked Questions (FAQ)
Q: What makes an altcoin more likely to get an ETF approved?
A: Key factors include market liquidity, regulatory clarity (especially whether the asset is deemed a commodity), a history of stable operation, and existing futures markets like those on CME.
Q: Will all altcoin ETFs be approved at once?
A: No. The SEC will likely approve them sequentially, starting with the most established assets like LTC or SOL. Approval of one could accelerate others via precedent.
Q: How do spot ETFs differ from futures ETFs?
A: Spot ETFs hold the actual asset (e.g., real Bitcoin), offering precise price tracking. Futures ETFs use derivatives contracts, which can deviate from spot prices due to expiration rolls.
Q: Can memecoins really get approved as ETFs?
A: DOGE has a realistic chance due to its size and history. However, politically tied or obscure memecoins like TRUMP or BONK face significant regulatory skepticism.
Q: What happens if an altcoin ETF is rejected?
A: Rejection could lead to short-term price declines and reduced institutional interest. However, repeated filings often signal long-term determination by asset managers.
Q: How can I invest if I don’t have a brokerage account?
A: Many digital asset platforms offer direct token access. As regulations evolve, new investment vehicles will emerge to bridge crypto and traditional finance.
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Conclusion: 2025 – A Pivotal Year for Crypto Legitimization
The era of crypto ETFs is expanding beyond Bitcoin and Ethereum. With over a dozen altcoins now under regulatory review, 2025 could be remembered as the year digital assets achieved broader financial legitimacy.
Assets like Litecoin, Solana, and Dogecoin are leading the charge, backed by strong fundamentals and serious institutional backing. While regulatory hurdles remain — especially for memecoins and NFT-linked funds — the trend is clear: crypto is moving into the mainstream.
If even half of these ETFs are approved, we could see tens of billions in new institutional capital flow into the crypto market — reshaping valuations, liquidity, and public perception.