The impending approval of altcoin-related exchange-traded funds (ETFs) could potentially revolutionize the crypto market, according to Bloomberg senior ETF analyst Eric Balchunas. He revealed that a total of 14 altcoin ETFs are currently awaiting approval from the US Securities and Exchange Commission (SEC) within the next year. These ETFs will provide exposure to a variety of altcoins such as Solana (SOL), XRP, Hedera (HBAR), Litecoin (LTC), as well as baskets of assets, and even combinations of Bitcoin (BTC) and Ethereum (ETH) simultaneously.
Balchunas also mentioned that the list of altcoin ETFs is expected to triple in size over the next two months, creating a favorable environment for the introduction of new investment opportunities in the crypto space. Following President Donald Trump’s victory in the US elections, ETF Store CEO Nate Geraci predicted the listing of several spot crypto ETFs, anticipating a surge in market activity. This prediction has already started to materialize, with asset managers filing for new ETF listings in recent weeks.
Canary Capital filed for an HBAR ETF, Bitwise registered a SOL trust, and NYSE filed to list a mixed BTC and ETH ETF, signaling a growing interest in altcoin ETFs. Bloomberg ETF analyst James Seyffart believes that the SEC is likely to approve Solana-related ETFs within the next two years, although there is a possibility of regulatory hurdles. The fate of the Litecoin ETF, on the other hand, seems more promising as it has a higher chance of approval due to its fair launch without a pre-mine or token sale.
Despite the uncertainty surrounding the SEC’s stance on altcoin ETFs, industry experts remain optimistic about the potential benefits of introducing these new investment products into the market. The approval of altcoin ETFs could potentially make the crypto market “pretty wild,” as Balchunas suggested, opening up new avenues for investors to diversify their portfolios and participate in the growing digital asset ecosystem.