October 2025 is expected to be crucial for the cryptocurrency sector as the U.S. Securities and Exchange Commission (SEC) prepares to make decisions on 16 exchange-traded fund (ETF) applications. This round of applications includes not just Bitcoin and Ether, but also altcoins such as Solana, XRP, and Litecoin.

This week’s episode of “Byte-Sized Insight” delves into how this wave of applications differs from previous ones, the SEC’s evolving position, and the implications these potential approvals might have for investors and the wider crypto market.

A New SEC Era

On September 17, the SEC approved new “generic listing standards” for exchange-traded products connected to spot commodities, which includes digital assets. Analysts believe this will streamline the ETF approval process, reducing the previous requirement for individual case assessments that delayed cryptocurrency’s entry into mainstream financial products.

This change occurs under a different political climate than in past years. Zach Pandl, head of research at Grayscale, remarked that the shift in U.S. administration has created momentum for clearer regulations.

“President Trump and the Trump administration came into office with a mandate from voters to bring regulatory clarity to the crypto industry in the US,” Pandl stated. “It’s really been a whole-of-government effort. Whether it’s the White House or Congress or the SEC, it’s just responding to that message from voters.”

He further noted that bipartisan support has bolstered confidence among businesses and investors, indicating that cryptocurrency is poised to remain a significant factor in the American market.

Demand Beyond Bitcoin

The pressing question is the actual need for altcoin ETFs. James Seyffart, an ETF analyst from Bloomberg Intelligence, emphasized that both Solana and XRP are notable due to their established futures markets, but he warned against expecting inflows to mirror those seen with Bitcoin.

“They will do decently well as far as flows and AUM go,” Seyffart commented, adding, “but the long-term growth story may lie in basket or index products.”

Pandl supported this view, highlighting Grayscale’s recent initiative for a diversified index fund, stating, “We’re encouraged not only to be bringing these single-asset ETPs to market, but also the first diversified index-based crypto ETP, a kind of one-stop shop solution for crypto exposure in a portfolio.”

What Comes Next?

Seyffart noted that approval could lead to an explosion of new product offerings, mentioning:

“You’re going to see things like staking Solana ETFs, covered call ETFs, leveraged and inverse products. … It’s going to get crazy.”

Whether the upcoming month brings immediate investments or simply lays the groundwork for growth, analysts agree that the regulatory landscape has shifted. For the first time, altcoin ETFs seem closer to entering mainstream U.S. markets.