What to Know:
- Analysts at Bloomberg predict at least a 75% chance of approval for a variety of altcoin ETFs.
- The SEC is expected to deliver a response on one set of proposals by July 2, with additional decisions due by December.
- Some smaller altcoin ETF applications, such as SUI, have not yet reached the official review stage.
Crypto ETF providers may soon expand their offerings beyond standard bitcoin and ether funds.
Bloomberg ETF experts Eric Balchunas and James Seyffart estimate that there is over a 75% likelihood that the SEC will endorse a selection of spot altcoin ETFs by the close of 2025.
Currently, eight distinct spot fund applications are under SEC consideration, including proposals connected to Solana (SOL), Litecoin (LTC), Dogecoin (DOGE), XRP, Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), and Hedera (HBAR). Balchunas and Seyffart contend that basket-style ETFs, which include multiple cryptocurrencies, hold the most promise for approval, with a 90% success forecast.
The primary deadline approaches on July 2, when the SEC must respond to applications submitted by firms such as Grayscale, Bitwise, Franklin Templeton, and Hashdex for their grouped funds. Final rulings on single-asset ETFs like SOL, DOGE, and XRP are anticipated in October, with others following up in November and December. These are absolute deadlines, meaning the SEC is mandated to finalize its decisions, having previously postponed them.
Additional issuers have expressed interest in launching funds based on smaller-cap tokens like SUI, Trump Coin (TRUMP), and Melania Coin (MELANIA), but these initiatives haven’t progressed to the requisite SEC review stage yet.
Seyffart has indicated that SUI may have prospects comparable to other altcoin applications. “I need to look further into it for an official odds estimate, but I’d guess it has a similar chance to the other altcoin ETFs,” he remarked.
The attitude toward altcoin ETFs shifted dramatically after the inauguration of U.S. President Donald Trump and the appointment of crypto-friendly Paul Atkins as SEC Chairman. Atkins has recently informed industry stakeholders that innovation “has been stifled” and that the current regulatory framework “urgently requires attention.”
