# Introduction

In the fourth quarter of 2025, the U.S. market welcomed a concentrated launch period for altcoin ETFs, with multiple single-asset spot ETFs being approved and listed in succession, creating a rare "batch issuance" situation in the previous crypto market. The successful launch of Bitcoin (BTC) and Ethereum (ETH) spot ETFs not only opened the door for institutional investors to compliantly allocate crypto assets but also established a clear approval paradigm and product path at the institutional level, directly catalyzing the concentrated application and accelerated promotion of altcoin ETFs.

With the U.S. Securities and Exchange Commission (SEC) continuing to adjust its approval mechanism for crypto ETFs, and with active layouts from asset management institutions and market participants, the fourth quarter of 2025 became a key time window for the intensive launch of altcoin ETFs. ETFs for assets such as XRP, SOL, DOGE, LTC, HBAR, and LINK gradually went live on exchanges, while the next wave of altcoin ETFs, including AVAX and AAVE, is also accelerating. The rapid expansion of altcoin ETFs not only reflects a significant acceleration in the institutionalization process of the crypto market but also marks a transition in the product structure of crypto assets from being "dominated by a single core asset" to a more diversified and layered mature stage.

In this context, this article will systematically sort out the overall development context of current altcoin ETFs, focusing on the demonstration effect of Bitcoin and Ethereum ETFs, the wave of batch listings of altcoin ETFs, and potential targets that are currently under application; it will also conduct specific analyses based on data such as fund flows, trading activity, asset management scale, and price performance of listed altcoin ETFs. On this basis, it will further explore the opportunities and risks faced by altcoin ETFs and make forecasts on future development trends, striving to provide ordinary investors and institutional allocators with a clear structure, rigorous logic, and valuable industry insights, helping investors clarify judgments and make prudent decisions in this emerging track.

# Overview of Altcoin ETFs

1. Demonstration Effect of Bitcoin and Ethereum ETFs

In recent years, the most significant milestone for crypto assets entering the traditional financial system has been the approval of Bitcoin (BTC) and Ethereum (ETH) spot ETFs in the U.S. After the debut of the Bitcoin ETF, it attracted massive institutional funds in a short period, significantly boosting market participation; the Ethereum ETF followed closely, providing more institutions and retail investors with a compliant pathway to invest in crypto assets.

This gate effect has greatly changed the market structure: investors' risk tolerance has increased, the motivation for institutions to allocate digital assets has strengthened, asset management companies have begun to actively expand product boundaries, and regulators have gradually accumulated review practices and approval confidence. Against this backdrop, a wave of applications for various altcoin ETFs has rapidly formed, with multiple asset management institutions laying out products for XRP, DOGE, LTC, HBAR, SUI, and LINK.

Source: https://x.com/Minh_BNB10000/status/1999307817430462471?s=20

Another driving force is the gradual adjustment of regulatory policies by the U.S. Securities and Exchange Commission (SEC). In September 2025, the SEC officially approved the revised "General Listing Standards for Commodity Trust Shares," providing clearer entry standards for crypto asset ETFs and shortening approval times. This means that crypto assets meeting basic conditions no longer require a lengthy case-by-case review process (originally about 240 days, now shortened to about 60-75 days). This serves as an important institutional foundation for the batch application and concentrated listing of altcoin ETFs.

Additionally, a key opportunity arose from the regulatory window created by the U.S. government shutdown in November 2025—under specific legal provisions (such as Section 8(a) of the Securities Act of 1933), certain fund registration statements could automatically take effect without delay clauses, indirectly creating a "tacit channel" for rapid listings. These factors collectively gave rise to the recent wave of concentrated listings of ETFs in the altcoin space.

2. Wave of Batch Listings of Altcoin ETFs

Since the second half of 2025, the pace of approvals and listings for U.S. altcoin ETFs has noticeably accelerated, characterized by "queue listings + progressive batch approvals."

• Solana ETF: In October 2025, the Solana (SOL) ETF successfully passed review and was listed on exchanges such as the NYSE. This marked the first truly meaningful altcoin spot ETF to be launched in the U.S.

• Hedera ETF: In the same month, multiple application documents for the Hedera (HBAR) ETF were submitted and entered review. Institutions like Canary Capital have also completed revisions to the ETF registration statement for HBAR, and the HBAR ETF is expected to be approved and listed in the following weeks.

• XRP ETF: In November 2025, the XRP ETF became the second altcoin spot ETF to be rapidly approved and listed. XRP ETFs launched by Canary Capital, Grayscale, 21Shares, and others were listed on exchanges such as NYSE Arca, attracting significant capital inflows in a short time.

• DOGE ETF: In November 2025, the DOGE (Dogecoin) ETF received DEC approval for listing, representing a cautious recognition from regulators for meme coins.

• LTC ETF: The long-established altcoin LTC (Litecoin) ETF was also approved in November. Although the fund inflow for the ETF was relatively small, it laid the groundwork for more applications for older altcoin ETFs.

• LINK ETF: Following XRP, SOL, DOGE, and LTC, the LINK (Chainlink) ETF officially "broke the ice" and was listed in early December. The LINK ETF attracted tens of millions of dollars on its first day, indicating investor interest in on-chain infrastructure assets with ecological foundations and practical linking protocols.

• SUI ETF: On December 5, the U.S. Securities and Exchange Commission (SEC) approved the first 2x leveraged SUI ETF (TXXS), issued by 21Shares, which has been listed on Nasdaq.

3. Altcoin ETFs Under Application

In addition to the listed altcoin ETFs, there is a large number of potential products in the SEC review queue, and the active application of these ETFs also constitutes a core driving force for market attention in the next phase.

Assets under high scrutiny include:

• AVAX ETF: Avalanche, as a major smart contract chain, has compliance and market foundations and has entered a fast-track approval process, expected to become one of the next approved targets.

• BNB ETF: The ETF applications related to BNB are mainly driven by asset management institutions such as VanEck, REX Shares, and Osprey Funds, and have entered the SEC review channel, indicating that BNB is likely to become the first Binance ecosystem-related ETF product approved in the U.S.

• Other Potential Assets: Assets such as ADA (Cardano), DOT (Polkadot), INJ (Injective), SEI, APTOS, and AAVE have also had ETF registration documents enter the regulatory queue. Bloomberg Intelligence analyst James Seyffart pointed out that there are currently dozens of asset-class ETF applications piled up at the SEC, with a significant proportion being altcoin-related.

• Multi-Currency ETFs: Some institutions are also attempting strategic layouts for "multi-currency combination ETFs," staking yield ETFs, and even meme coin-themed ETFs. If these innovative products are approved, they will further expand the boundaries of compliant investment in altcoins.

Overall, in the next 6-12 months, the approval pace for U.S. altcoin ETFs is expected to remain high. The existing XRP, SOL, DOGE, LTC, HBAR, and LINK ETFs are just the "first batch of entrants," with more assets in the queue for application, forming a systematic market development trend.

# Data Performance Review of Listed Altcoin ETFs

The debut of altcoin spot ETFs in the market has become a major focus of the crypto market. Although overall market sentiment has been weak for mainstream assets, some altcoin ETFs have still attracted considerable capital attention.

1. XRP Spot ETF

Source: https://sosovalue.com/assets/etf

The XRP spot ETF has been launched by multiple asset management institutions, including Canary Capital, Grayscale, Franklin Templeton, and Bitwise. It is one of the most actively participated targets among altcoin ETFs.

After its listing, the XRP ETF demonstrated strong capital attraction, with a cumulative net inflow of approximately $970 million since its launch. All XRP funds collectively manage assets exceeding $929 million, and since its launch on November 13, it has recorded net inflows for several consecutive trading days, with a total inflow of approximately $756 million over nearly 11 trading days.

The XRP ETF is currently one of the most popular targets among altcoin ETFs, becoming the "preferred entry point" for institutions to allocate altcoins due to its multiple institutional issuers, strong capital inflows, and large AUM scale.

2. SOL Spot ETF

Source: https://sosovalue.com/assets/etf

The launch of the Solana ETF was jointly promoted by multiple asset management institutions, with a cumulative net inflow of approximately $672 million since its launch, while the total AUM is about $928 million. This indicates that the "scale" of the Solana ETF is among the largest in altcoin products and is a representative of good capital absorption sustainability.

However, unlike XRP, the capital inflow for the Solana ETF has shown a more phased investment characteristic: significant capital entered on the first day, but the pace of capital inflow stabilized in the following weeks rather than experiencing explosive growth. This suggests that investors may place more emphasis on long-term allocation rather than short-term arbitrage trading.

The performance of the Solana ETF demonstrates the potential of altcoin ETFs to attract institutional capital allocation and reflects the market's characteristic of "patient layout." Its ETF scale leads similar assets, but the disconnect between price and capital flow also indicates that short-term volatility risks still exist.

3. HBAR Spot ETF

Source: https://sosovalue.com/assets/etf

The Hedera (HBAR) ETF has also entered the trading market and gained some attention. The early-born Hedera ETF has accumulated approximately $82 million in net capital inflow, becoming a medium-sized altcoin product. Compared to XRP and SOL, HBAR's capital volume is relatively smaller.

The HBAR ETF exhibits a characteristic of continuous weekly net inflows, with relatively sustained capital flow. Even though the weekly scale is not large, there has been no significant capital outflow. This stability is closely related to its ecological foundation and practical application scenarios, but the price has still been affected by the overall weakening of the crypto market, with HBAR's price dropping nearly 20% since the ETF's launch.

4. LTC Spot ETF

Source: https://sosovalue.com/assets/etf

LTC (Litecoin), as one of the earliest altcoins, successfully pushed its spot ETF to market by institutions like Canary Capital at the end of October 2025, making it one of the first approved altcoin ETF products. Despite its historical significance and high trading activity, its capital-raising performance and market attention have been noticeably lower than those of leading alternative coin ETFs like XRP and SOL after the ETF's launch.

According to SoSoValue data, as of mid-November 2025, the LTC ETF (commonly referred to as LTCC) had a cumulative net inflow of approximately $76.7 million. There were even instances of zero net inflow on multiple days. Compared to the hundreds of millions of dollars inflow for the XRP ETF and the tens of millions to over a hundred million for the SOL ETF, LTC's capital absorption is significantly lacking and has not become a core target for investors building an altcoin ETF allocation system.

5. DOGE Spot ETF

Source: https://sosovalue.com/assets/etf

DOGE (Dogecoin) is one of the most iconic meme coins, long regarded in the market as a community sentiment-driven asset. With the SEC's approval in November 2025 for institutions like Rex-Osprey to list the DOGE ETF, this marked DOGE as one of the most symbolic projects among the first meme coin ETFs.

According to the latest SoSoValue data, the historical cumulative net inflow of the DOGE spot ETF is approximately $2.05 million, indicating very limited capital allocation. In terms of trading activity, the overall trading volume of the DOGE ETF has also been relatively cold. Although there were several million dollars in trading volume on the first day, the overall trading structure has been unbalanced, often accompanied by sparse capital inflows and outflows. This trading performance indicates that institutional funds are unwilling to deeply allocate in the DOGE ETF.

6. LINK Spot ETF

Source: https://sosovalue.com/assets/etf

The first spot ETF supporting LINK (Chainlink) in the U.S., the Grayscale Chainlink Trust ETF (code GLNK), was officially listed on the New York Stock Exchange (NYSE) on December 2, 2024, Eastern Time. Since its launch, the LINK ETF has seen approximately $52 million in net inflows, with an AUM of $76 million. The capital attraction partly stems from Chainlink's practical use in blockchain data infrastructure, leading some long-term institutional investors to strategically allocate to its ETF.

In terms of price, LINK itself has still been affected by the broader market performance recently, but the capital allocation in the ETF may provide a relatively stable foundational demand for future prices.

7. Summary of Performance of Listed Altcoin ETFs

From the performance of the above ETFs, it can be seen that the U.S. altcoin spot ETF market shows a clear "differentiated development":

• Large capital is mainly concentrated in XRP and Solana ETFs, which have a high number of issuances, rapid capital accumulation, and large AUM scales, making them the core focus of the altcoin ETF market.

• Medium-sized asset ETFs like HBAR and LINK show stable performance, achieving a relative balance between ecological value and institutional recognition, but still struggle to compete with leading assets.

• LTC and DOGE ETFs exhibit marginalization, with small capital scales and low trading activity, coupled with a lack of significant price support, leading to insufficient market attention.

• Overall, the market has generally faced price pressure after the launch of altcoin ETFs, indicating that market sentiment and macro factors still have a significant impact on prices, and the capital attraction of ETFs has not immediately translated into price increase momentum.

Overall, while altcoin ETFs have not yet reached the market depth and scale of BTC/ETH ETFs, they have already shown trends of segmented allocation, long-term capital inflows, and increased institutional participation, forming the embryonic shape of a new era of "institutional investment" in the altcoin market.

# Opportunities and Risks Analysis of Altcoin ETFs

With the intensive approval and listing of U.S. altcoin spot ETFs, the market is entering a new phase of institutionalized investment. Although the current scale is still far from that of Bitcoin and Ethereum ETFs, their development potential and demonstration effect cannot be ignored.

1. From Institutionalization to Differentiation: Structural Opportunities for Altcoin ETFs

1) Institutional Dividend Realization: The success of Bitcoin and Ethereum spot ETFs has opened a compliant channel for altcoin products. The SEC revised the ETF general listing standards in 2025 and introduced institutional mechanisms such as "fast track" and Section 8(a) of the Securities Act of 1933, allowing altcoin ETFs to enter the exchange market more efficiently—this shift has shortened the approval path and increased product diversity, overall lowering the barriers for institutional entry.

2) Opportunity for Reallocation of Institutional Funds: Market data from November 2025 shows that although Bitcoin and Ethereum spot ETFs experienced large-scale capital outflows, altcoin ETFs attracted approximately $1.3 billion in capital, mainly flowing into XRP and Solana-related products, indicating that institutions are willing to reassess altcoin allocations in the short term. More importantly, this capital flow is not solely driven by market sentiment but reflects institutions' selective pursuit of specific asset fundamentals, compliance, and ecological value. For example:

• The XRP ETF has gained attention due to its relatively clear cross-border payment application logic and regulatory path;

• The Solana ETF combines staking yield and other income-generating structures, likely attracting institutional funds seeking long-term allocation.

This phenomenon of capital flowing from BTC/ETH to altcoin ETFs not only indicates a dispersion of enthusiasm for single-target allocations but also reflects a growing acceptance of "altcoins as long-term value investment targets" at the institutional level.

3) ETFs as Compliant Windows Attracting Retail and Institutional Investors: Altcoin ETFs provide ordinary investors with a simplified pathway to access on-chain assets: no need to manage wallets and private keys, no reliance on centralized exchanges, and risks are more controllable than self-custody. For institutional investors, ETFs serve as a mature compliant entry tool that can be incorporated into traditional investment frameworks such as pension funds, hedge funds, and wealth management products, thereby expanding the capital base.

The existence of ETFs also enhances the visibility and transparency of the industry, making altcoin investments no longer solely reliant on decentralized trading and OTC liquidity, but rather having a traditional financial vehicle that can be included in investment portfolios.

2. Core Risks: Coexisting Market, Regulatory, and Technical Challenges

Despite the emerging opportunities, altcoin ETFs still face numerous risks, stemming from both their asset characteristics and the macro and regulatory environment.

1) Regulatory Environment Still Holds Uncertainty: Although the approval mechanism has improved, the SEC remains highly cautious regarding altcoin ETFs overall. The legal positioning of regulatory bodies, classification standards, and potentially changing compliance requirements in the future may all affect the ongoing operation and liquidity of ETFs. The SEC's continued focus on defining the identity of certain assets (e.g., whether they are securities vs. commodities) remains a key review point, and any policy reversal or judicial ruling could lead to product adjustments or suspensions. Furthermore, despite the acceleration of the approval wave, the rapid "default effectiveness" mechanism has raised market concerns, which may mean that some products still need compliance optimization after launch, creating potential impacts on price volatility and capital allocation.

2) Market Depth and Liquidity Risks Are Apparent: Compared to the deep trading depth of BTC or ETH, many altcoins still exhibit weak market liquidity. Large-scale inflows into ETFs may cause significant market shocks, and during market adjustments, redemption pressures on ETFs may exacerbate liquidity tightness. For instance, while the Solana ETF has shown strong capital attraction, it faces downward pressure on SOL prices, and the price has not risen in tandem with capital inflows, indicating that the pricing of altcoins is not solely driven by capital flows but is also heavily influenced by market sentiment and liquidity conditions. Additionally, for some more marginal altcoins, such as DOGE and LTC ETFs, their capital-raising ability is weak, and their market depth is insufficient to support the rapid entry and exit of large institutional funds, which may lead to greater slippage risks during severe market fluctuations.

3) Market Saturation and Product Competition Risks: As the number of altcoin ETFs surges, capital may become "dispersed" among different products, making it difficult for individual ETFs to enhance their capital scale, thereby weakening their price-driving power and market attention. Currently, over a hundred crypto ETF filings have been submitted to the SEC, with an increasing number of altcoins, which somewhat dilutes investor attention. If the market becomes oversaturated and an "ETF fee war" becomes the norm, it may lead to attracting capital by lowering fees at the expense of product quality and investment value, which is detrimental to long-term holders.

4) High Volatility and Price Risks: Altcoin assets are inherently more volatile than BTC/ETH, meaning that even if ETFs provide a compliant entry for investors, prices may still fluctuate wildly. Just as some altcoin ETFs did not see sustained price increases after launch, capital inflows do not guarantee price rises. The market may experience significant pullbacks due to macro sentiment, liquidity tightening, and forced liquidation events, posing challenges for investors with lower risk tolerance. Especially in products with high retail participation, altcoin ETFs are more susceptible to market sentiment fluctuations, and such irrational behavior may be amplified.

5) Technical and Operational Risks: As financial products, ETFs rely on exchange custody, clearing mechanisms, and the security of underlying assets. The smart contract risks of altcoins, exchange custody risks, and zombie order book risks (widening bid-ask spreads due to insufficient trading activity) may all pose technical risks to ETF operations. For smaller altcoins, assets are easily affected by the "trading island effect," and once the growth of ETF scale slows, these risks may quickly manifest.

# Outlook and Conclusion on Altcoin ETF Trends

Looking ahead, the development of altcoin ETFs will continue to profoundly influence the landscape of the crypto asset market. As institutional dividends are gradually realized, the regulatory environment becomes clearer, and institutional interest in capital allocation increases, this segmented track is entering a critical stage from germination to maturity.

• From an institutional perspective, the U.S. Securities and Exchange Commission (SEC) has made significant adjustments to its approval rules for crypto ETFs, introducing general listing standards and significantly shortening approval times from hundreds of days to about 75 days, which is expected to bring higher review efficiency and predictability for altcoin ETFs. This institutional optimization not only improves regulatory signals but also paves the way for more asset classes like SOL, XRP, LTC, and HBAR to enter the ETF market, promoting the industry from case-by-case approvals to large-scale implementations. Therefore, in the coming quarters, we are likely to see more altcoin ETFs obtaining listing permissions and trading.

• In terms of market sentiment, industry participants and analytical institutions generally expect a high probability of approval for altcoin ETFs. Bloomberg ETF analysts have assessed the approval probabilities for mainstream altcoin spot ETFs like Solana, XRP, and LTC at over 90%, with some analyses suggesting that the approval of certain products is almost a "done deal," and they are expected to gradually materialize in the coming months. This cautious optimism reflects the regulatory recognition of compliance, trading transparency, and market maturity, helping to attract more institutions and long-term capital into this field.

• On an international level, the development trend of altcoin ETFs is also advancing simultaneously in multiple markets. Canada, Europe, and Asian markets already have crypto ETFs or similar products, each with unique product designs and regulatory frameworks. They not only provide institutional and operational references for the U.S. market but also promote a complementary and comparative effect for global capital when allocating digital assets across markets. For example, the support for crypto asset index ETFs in countries like France and Germany, as well as the introduction of altcoin options/futures tools by some Asian exchanges, will provide U.S. investors with broader data and strategic references.

• Internally, a trend of "layered allocation" strategies is also forming: leading assets like XRP, SOL, ETH, and BTC remain the core of institutional and compliant allocations, while mid-sized and smaller altcoin ETFs (such as DOT, ADA, AVAX, INJ, etc.) may become choices for investors seeking high-risk, high-return investments. As the number of products increases, investors will place more emphasis on ecological value, liquidity, and long-term fundamentals when constructing their investment portfolios, rather than merely chasing short-term hotspots.

It is important to note that despite the overall positive trend, altcoin ETFs still carry cyclical and structural risks. Subtle changes in regulatory policies, fluctuations in market liquidity, and the impact of the macroeconomic environment on the pricing of risk assets may all lead to performance differentiation among assets. This means that investors must focus on risk management and dynamic adjustments when laying out ETF products, paying attention to policy changes, market sentiment, and capital flows.

In summary, altcoin ETFs are an inevitable product of the integration of traditional finance and the crypto market, and their continued advancement aligns with the trends of market demand differentiation and regulatory adaptation. It is expected that by the first half of 2026, with the accumulation of regulatory experience and further optimization of approval processes, dozens to hundreds of altcoin ETF products submitted by more than ten asset management companies will be launched, forming a more mature, diverse, and layered value ETF ecosystem. For ordinary investors, this not only provides a compliant and convenient investment channel but also pushes the entire crypto market into a new stage of coexistence of institutionalization, decentralization, and specialization. The wave of altcoin ETFs has already begun, and future investment opportunities and risks coexist, with the key being how to participate rationally and structure allocations effectively.

About Us

Hotcoin Research, as the core research institution of Hotcoin Exchange, is dedicated to transforming professional analysis into your practical tools. We analyze market trends through "Weekly Insights" and "In-Depth Reports"; leveraging our exclusive column "Hotcoin Selection" (AI + expert dual screening), we identify potential assets and reduce trial-and-error costs. Every week, our researchers will also meet with you live to interpret hot topics and predict trends. We believe that warm companionship and professional guidance can help more investors navigate cycles and seize the value opportunities of Web3.

Risk Warning

The cryptocurrency market is highly volatile, and investments carry risks. We strongly recommend that investors conduct investments based on a full understanding of these risks and within a strict risk management framework to ensure the safety of their funds.