Bitcoin and Ethereum ETFs pave the way for an altcoin ETF explosion

The crypto space is divided. Opinions vary from liquidity to perceptions of L1 supremacy. But if there is one thing that unites all crypto enthusiasts, it is the desire for cryptocurrency to be accepted by the mainstream.

The crypto space is divided. There are opinions on which L1 has better liquidity and which is better in terms of narrative perception. But if there is one thing that all crypto enthusiasts can agree on, it is the desire for cryptocurrency to be accepted by the mainstream.

Between 2024 and 2025, the dream of mainstream acceptance of cryptocurrency takes a huge step forward as cryptocurrency ETFs are approved and rapidly expand. For the first time, investors will be able to invest in a variety of digital assets directly through a traditional brokerage account without having to go through complicated crypto wallets or exchanges.

Institutional investors, who were previously hesitant due to regulatory uncertainty, invested billions of dollars in the Bitcoin and Ethereum ETFs within weeks of their launch. The impact was immediate. Bitcoin prices soared to new all-time highs, and the Ethereum ETF was quickly approved. These ETFs provide traditional financial participants with easier investment channels and deeper market liquidity. This also set a precedent for regulatory approval of other cryptocurrency ETFs.

Now, with Gary Gensler stepping down as SEC chairman and a more crypto-friendly administration in the U.S., asset managers are taking the opportunity to file for more altcoin ETFs, such as Solana and Ripple, and even memecoins like Dogecoin, BONK, and Trump Memecoin.

This article provides a comprehensive overview of the current state of the cryptocurrency ETF craze.

Bitcoin ETF lays the foundation for the market

Bitcoin has long been the poster child for cryptocurrency, and in 2024, it officially entered the mainstream financial system with the approval of the first spot Bitcoin ETFs in the United States. Although Bitcoin futures ETFs have existed since 2021, the launch of spot ETFs was a watershed moment because investors were able to directly hold actual Bitcoin assets rather than derivative contracts.

In just a few days of listing, spot Bitcoin ETFs attracted billions of dollars in inflows. This inflow of funds has greatly improved Bitcoin’s liquidity and solidified its position as a legitimate asset class alongside traditional commodities such as gold.

The market has quickly become a battleground for investors as multiple asset managers have launched competing bitcoin ETFs. While BlackRock’s iShares Bitcoin Trust has dominated early inflows, Fidelity, ARK Invest and VanEck have also seen significant participation.

Several large asset managers have launched spot Bitcoin ETFs by 2025. Here are the major funds and their Bitcoin holdings.

The key differences between futures Bitcoin ETFs and spot Bitcoin ETFs:

Ethereum ETF

After the success of Bitcoin ETF, the next major milestone in the cryptocurrency ETF space is the launch of Ethereum ETF. While Bitcoin is often regarded as “digital gold”, Ethereum is the backbone of the DeFi and smart contract ecosystem.

Initially, regulators were hesitant to approve an Ethereum ETF. With the U.S. SEC approving a spot Bitcoin ETF in early 2024, the path forward for Ethereum has become clearer.

By May 2024, multiple Ethereum futures ETFs received regulatory approval, marking another watershed moment for cryptocurrency adoption. A spot Ethereum ETF was approved in July 2024. In the months leading up to the approval, Ethereum’s price broke through the $4,000 mark, mirroring Bitcoin’s rally earlier this year.

As of 2025, Ethereum spot ETFs collectively hold a large amount of Ether, making it one of the largest institutional investment vehicles for the asset.

At the time of writing, nearly 3 million ETH is held by ETFs, with institutional participation in ETH reaching a new high.

Altcoin ETF Season is Coming

With spot Bitcoin and Ethereum ETFs now firmly established, asset managers have set their sights on the broader cryptocurrency ecosystem.

Encouraged by the S.E.C.’s increasingly open attitude towards cryptocurrencies and the continuous improvement of the market’s regulatory structure, asset management companies have applied for a number of altcoin ETFs. These proposals are aimed at attracting investors to invest in popular tokens such as Litecoin, XRP, Solana, Dogecoin, and Cardano.

Although the United States has yet to approve any altcoin ETFs, several are currently pending approval and regulatory attitudes are shifting. Analysts and industry insiders believe that once the first altcoin ETF is approved, other altcoin ETFs will quickly follow. This is very similar to the domino effect that occurred when Bitcoin and Ethereum were approved.

Solana (SOL) ETF

Solana has surged in popularity over the past year and has become one of the most popular candidates for altcoin ETFs. With a strong DeFi ecosystem, Solana is seen as Ethereum’s strongest competitor in the smart contract field.

However, a key regulatory hurdle remains: whether Solana is considered a security. Ongoing litigation and classification debates could delay the S.E.C.’s decision. Nonetheless, the infrastructure is already taking shape — the D.T.C.C. has listed two Solana futures E.T.Fs (SOLZ, SOLT), while the Chicago Mercantile Exchange is also preparing to