The landscape of cryptocurrency investing is undergoing a seismic shift, as traditional finance embraces digital assets through the growing wave of exchange-traded funds (ETFs). With the successful launches of Bitcoin and Ethereum spot ETFs, institutional adoption has accelerated, paving the way for a new frontier: altcoin ETFs. From Solana and XRP to Litecoin and even meme-based tokens like DOGE and BONK, asset managers are aggressively filing applications with the U.S. Securities and Exchange Commission (SEC). This report explores the current state of altcoin ETF applications, regulatory outlooks, and what’s at stake for investors and the broader crypto market.
How Bitcoin and Ethereum ETFs Set the Stage
The approval of spot Bitcoin ETFs in early 2024 marked a watershed moment for crypto legitimacy. Unlike futures-based ETFs, which track derivatives contracts, spot ETFs hold actual Bitcoin, offering investors direct exposure without managing private keys or navigating exchanges.
Within days of launch, these ETFs attracted billions in inflows, signaling strong institutional demand. Firms like BlackRock, Fidelity, ARK Invest, and VanEck quickly dominated the space, proving that mainstream investors were ready to participate—provided the access was simple, secure, and regulated.
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The success of Bitcoin ETFs created a regulatory precedent. When spot Ethereum ETFs followed in July 2024—after months of speculation and price momentum pushing ETH above $4,000—the path forward became clearer. By early 2025, Ethereum ETFs collectively held nearly 3 million ETH, making them one of the largest institutional gateways into the asset.
These milestones demonstrated two critical truths:
- The SEC is willing to approve crypto ETFs when sufficient market maturity and custody solutions exist.
- Once one major asset gains approval, others quickly follow—a "domino effect" now unfolding across the altcoin ecosystem.
The Rise of Altcoin ETF Applications
With Bitcoin and Ethereum firmly established, asset managers have turned their attention to altcoins, seeking to replicate the ETF model across a wider range of digital assets. Driven by increased regulatory clarity and improved infrastructure—such as Coinbase Custody partnerships and DTCC eligibility—firms are submitting formal proposals for spot ETFs on networks like Solana, XRP, Litecoin, Cardano, and even emerging Layer 1s like Aptos and Sui.
While no altcoin ETF has been approved yet, dozens are under active review. Analysts believe that the first approval could trigger a cascade, especially if it involves a well-established project with strong liquidity and community support.
Core Keywords:
- Altcoin ETF
- Crypto ETF applications
- Solana ETF
- XRP ETF
- Litecoin ETF
- Meme coin ETF
- SEC crypto regulation
- Spot crypto ETF
Key Altcoin ETF Proposals in 2025
Solana (SOL) ETF: High Hopes Amid Regulatory Uncertainty
Solana has emerged as one of the most promising candidates for an ETF. Its robust DeFi ecosystem and high transaction throughput position it as a top competitor to Ethereum.
Multiple firms have filed applications:
- VanEck, 21Shares, Bitwise, Grayscale, Canary Capital, and Franklin Templeton have all submitted S-1 filings.
- Grayscale aims to convert its existing GSOL trust into a spot ETF.
- Franklin Templeton’s entry—a firm managing over $1.5 trillion—signals serious institutional interest.
Despite this momentum, a key question remains: Is SOL a security? Ongoing legal debates may delay the SEC’s decision. However, DTCC listing two Solana futures ETFs (SOLZ, SOLT) and CME preparing for SOL futures suggest progress.
Approval odds: ~75% (Bloomberg Intelligence)
Potential inflows: $3–6 billion if approved
XRP ETF: Legal Gray Area Lingers
XRP’s journey has been tumultuous. Although Ripple won partial legal victories in 2023, the SEC has not fully clarified whether XRP qualifies as a security.
Nevertheless, filings have surged:
- Bitwise, Canary Capital, 21Shares, WisdomTree, Grayscale, CoinShares, ProShares, Teucrium, MEMX, and Volatility Shares have all submitted applications.
- Franklin Templeton also filed in March 2025, naming Coinbase Custody as custodian.
While Bloomberg estimates a 65% chance of approval, Polymarket prices it higher—at 81%.
Potential impact: Up to $8 billion in inflows (JPMorgan estimate), significantly boosting XRP’s credibility and market cap.
Litecoin (LTC) ETF: The "Digital Silver" Favorite
Often dubbed “digital silver” to Bitcoin’s “gold,” Litecoin offers fast, low-cost transactions and has maintained consistent relevance since 2011.
Key applicants:
- Canary Capital filed the first S-1 for a spot LTC ETF.
- Grayscale seeks to convert its LTCN trust into an ETF.
- CoinShares also entered the race in early 2025.
LTC’s long history, deep liquidity, and lack of major regulatory controversy make it a frontrunner.
Approval odds: Up to 90% in 2025
Impact: Increased visibility, liquidity, and price stability
Cardano (ADA), Avalanche (AVAX), Aptos (APT), and Sui (SUI)
| Project | Status | Outlook |
|---|---|---|
| Cardano (ADA) | Grayscale filed 19b-4 form; conversion underway | ~65% approval odds (Polymarket) |
| Avalanche (AVAX) | VanEck filed S-1; early stage | Low near-term odds |
| Aptos (APT) | Bitwise filed S-1; Coinbase as custodian | Low-to-medium; depends on prior approvals |
| Sui (SUI) | Canary Capital filed S-1 | Very low odds before 2026 |
These newer Layer 1s face challenges due to limited derivatives markets and shorter track records. However, their filings reflect long-term strategic positioning.
Meme Coin ETFs: Pushing the Boundaries
Perhaps the most controversial frontier is meme coin ETFs. Once dismissed as internet jokes, tokens like DOGE, BONK, TRUMP, and PENGU are now subject to formal financial product applications.
Dogecoin (DOGE) ETF: From Joke to Legitimacy?
DOGE stands out among meme coins due to its:
- Large market cap
- High liquidity
- Broad exchange support
- Active community
Filings include:
- Grayscale’s application to convert its private DOGE trust into a spot ETF
- Bitwise’s full S-1 submission
- Rex Shares’ joint filing with Osprey Funds
Approval odds: ~75% (Eric Balchunas, Bloomberg)
Significance: Could legitimize meme coins as investable assets
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Trump (TRUMP) Meme Coin ETF: Political Risk High
Filed by Rex Shares on January 21, 2025, this proposal targets a politically charged asset. The fund would allocate 80%+ of assets to TRUMP token or related derivatives.
Most experts view this as a test case or publicity stunt rather than a viable product. Even seasoned analysts call it “absurd.” The SEC is unlikely to approve any fund tied directly to political figures.
Approval odds: Very low
Risk: Reputational damage to the SEC if approved
BONK & PENGU: NFT-Backed Futures?
BONK, a Solana-based meme coin, has gained traction due to strong retail engagement. While its ETF faces low odds, approval could open doors for PEPE, WIF, and other meme tokens.
More groundbreaking is the PENGU ETF by Canary Capital:
- Tracks Pudgy Penguins’ native token
- Plans to hold both PENGU tokens (80–95%) and actual NFTs (5–15%)
- Remaining allocation in ETH and SOL for liquidity
If approved, it would be the first U.S. ETF to hold NFTs, setting a precedent for digital collectibles in regulated finance.
Challenges: Valuation, storage, and liquidation of non-fungible assets
Potential impact: Skyrocket interest in Pudgy Penguins and floor prices
Frequently Asked Questions (FAQ)
Q: What is an altcoin ETF?
An altcoin ETF is an exchange-traded fund that tracks the price of a non-Bitcoin cryptocurrency—like Solana or XRP—allowing investors to gain exposure without directly holding or storing the asset.
Q: Why haven’t any altcoin ETFs been approved yet?
The SEC requires proof of market maturity, anti-manipulation measures, custody solutions, and clear asset classification (commodity vs. security). Many altcoins are still under legal scrutiny.
Q: Which altcoin is most likely to get ETF approval first?
Litecoin (LTC) is considered the frontrunner due to its long history, high liquidity, and minimal regulatory risk. Solana (SOL) follows closely behind.
Q: Can meme coins really get ETFs?
While DOGE has a realistic shot due to its size and longevity, politically tied or highly speculative tokens like TRUMP face steep regulatory hurdles.
Q: How do spot ETFs differ from futures ETFs?
Spot ETFs hold the actual cryptocurrency and track its real-time price. Futures ETFs use derivative contracts that expire periodically, often leading to tracking errors.
Q: What happens if multiple altcoin ETFs are approved?
A wave of approvals could unlock tens of billions in institutional capital, driving up prices, increasing liquidity, and accelerating mainstream adoption across the crypto ecosystem.
Final Outlook: A New Era of Crypto Finance
The period from 2024 to 2025 represents a pivotal chapter in crypto history. With Bitcoin and Ethereum now embedded in traditional finance, the focus has shifted to expanding access through altcoin ETFs.
While regulatory decisions remain uncertain, the sheer volume of applications—from industry giants like Franklin Templeton to innovators like Canary Capital—signals unwavering confidence in crypto’s future.
If even half of these proposals succeed by 2026, we could witness an unprecedented fusion of decentralized innovation and institutional capital—one that redefines how the world invests in digital assets.