Altcoin ETFs Likely on Horizon, Says Wall Street Analysts

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In 2025, there has already been a lot of buzz about different ETFs hitting the market and getting green signals from authorities. Litecoin and many others have had these discussions about them, and now, chances are looking bright for even more altcoins. 

Wall Street analysts have grown increasingly bullish on what they call the “Altcoin ETFs Horizon.” In particular, after the successful experience of Bitcoin and Ethereum ETFs, attention has swiftly turned toward altcoins – cryptocurrencies beyond the top two. 

According to Bloomberg’s Eric Balchunas and James Seyffart, approvals for spot ETFs tied to Solana, XRP, Litecoin, Dogecoin, Cardano, Polkadot, Hedera, and Avalanche are increasingly likely in the coming days, which has given rise to questions about the Altcoin ETFs horizon. What will it mean for the crypto world? And, most importantly, how will traders and investors be affected? 

Why Does The Altcoin ETFs Horizon Feel Imminent? 

Several key catalysts are speeding up the Altcoin ETFs Horizon:

  1. Regulatory Changes

Under SEC Chair Paul Atkins, who was just appointed in April 2025, the commission has adopted a more open stance toward crypto, especially after Bitcoin and Ether ETF success and President Trump’s crypto-friendly posture. 

  1. Precedent from BTC and ETH ETFs

Since spot Bitcoin and Ethereum ETFs have accumulated over USD 100 billion in asses,  and have more than sufficiently demonstrated that well-regulated crypto ETFs can function smoothly, stakeholders and decision-makers alike are looking favorably at altcoins.  

  1. A Much Stronger Industry Supply Chain

On top of the above factors, it’s true that major asset managers are prepared for the altcoin ETFs horizon. There are 21Shares, VanEck, Grayscale, Franklin Templeton, and others, who have already submitted thought-out and thorough filings. This includes staking features and clear surveillance agreements. 

How the Odds Are Looking for Altcoin ETFs Horizon: 90-95 Percent Probability of Approval

In late June 2025, Bloomberg analysts assigned towering probabilities, which go up to a surprising 95 percent odds. This is for Solana, XRP, and Litecoin ETFs, while Dogecoin, Cardano, Polkadot, Hedera, and Avalanche were each estimated to have a likelihood in this race of around 90 percent.

Those forecasts basically represent the overall discussions around the sped-up Altcoin ETFs Horizon, suggesting that we’re probably going to see them emerge by late 2025.

Notably, there are also some analysts who think the approval is coming soon, potentially as early as July 2025. It goes without saying that this is thanks to positive SEC signals and political changes. There’s also, as we mentioned earlier, extensive filing activity from industry heavyweights like BlackRock and Fidelity.

In fact, as of mid-2025, more than 20 altcoin spot-ETF filings are awaiting/awaited SEC review. Grayscale, for example, has multiple filings pending for Hedera, Polkadot, XRP, Dogecoin, Cardano, and Solana. 

You might also remember that Eric Balchunas previously made remarks on this subject. He suggested that “14 altcoin-related ETFs” were pending approval and expected over 40 listings by early 2025. Now, with this news, this statement helps make the Altcoin ETFs Horizon rapidly more prominent.

Altcoin ETFs Horizon: Likely Effects on Crypto Markets

Chances are, you can already tell that altcoin ETFs will allow traditional investors to access tokens like Solana and Cardano without dealing with crypto wallets or exchanges. But what are the other effects to keep an eye out for?

  • The speculation around ETF approval is already impacting trading, for example., Litecoin surged after the ETF filing news. 
  • And, investors may rotate funds from Bitcoin/Ethereum into altcoin ETFs, further enabling price support across the broader crypto landscape. 
  • On the other hand, there are analysts like Katalin Tischhauser, from Sygnum, and Morningstar’s Bryan Armour who predict relatively modest initial inflows. They foresee hundreds of millions to a few billion, which is far below the more than USD 100 billion seen in Bitcoin ETFs.

How to Stay Stable During This Development

Lots of analysts and experts have been suggesting different ways crypto investors and traders can stay afloat while these developments take place.  Asset managers and funds are positioning for the next wave:

For starters, Litecoin’s legal status as a commodity has given it a regulatory leg up, with funds like Canary Capital and Nasdaq now speeding up their processes of listing ETFs.

Meanwhile, you can also see REX Osprey’s Solana Staking ETF taps staking yields, estimated to be around 7.3 percent. Note that this is a new model that might go all the way to altcoins like ADA, DOT, HBAR, etc.

Investors can also take the route of diversified index funds. For instance, there’s been noise about how Franklin Templeton and Hashdex have launched Bitcoin/Ethereum index ETFs. At this rate, altcoin‑inclusive indexes could come next, which would further energize the Altcoin ETFs Horizon pattern.

It goes without saying that there will be more than a few challenges ahead of this point. The SEC’s internal regulatory friction might get exacerbated while classifying tokens like Solana and XRP as securities. Then, there’s also surveillance needed for smaller-cap altcoins, considering low volume and manipulation risks. 

Conclusion

In truth, this is looking to be a series of new initiatives and developments. It’s more than likely that Altcoin ETFs Horizon is about to approach quite soon. Especially now that 90 to 95 percent approvals are projected, Wall Street analysts and others also seem to believe it’s no longer a question of if, but when. Nevertheless, investor demand for the altcoin ETFs horizon may be subdued compared to the fame that surrounded the Bitcoin or Ethereum debut phases.

With that in mind, though, it’s hard to deny that the altcoin ETFs horizon is going to be a pretty good new way to diversify holdings, specifically for advisers and retail investors. The most standout feature and some risk-factor related considerations to be taken seriously are about token classification. There’s also concern about liquidity and fees. Of course, ETFs’ ability to deliver staking or yield advantages is also another factor.

As 2025 continues to bring more updates in the crypto trading world, institutions and individuals alike will be watching rather closely. The fact is, the Altcoin ETFs Horizon could easily redefine crypto entry points. This will usher in a more diversified, regulated, accessible, and inclusive era of digital assets.

Frequently Asked Questions (FAQs)

What is the “Altcoin ETFs Horizon”?

It’s the expected timeframe, likely arriving by late 2025, when the US regulators will approve spot ETFs for major altcoins like Solana, XRP, Litecoin, Dogecoin, Cardano, Polkadot, Hedera, and Avalanche.

Which altcoin ETF might launch first?

Litecoin is the leading candidate thanks to its commodity classification and active ETF filings. Actually, the Commodity Futures Trading Commission has clearly categorized Litecoin as a commodity, which gives more weight to its legal suitability for an ETF.  

Will altcoin ETFs attract lots of money?

While altcoins will attract significant amounts of money, it will probably be less than Bitcoin or Ethereum. But still, analysts foresee initial inflows in the range of hundreds of millions to a few billion for the altcoin ETFs horizon, not tens of billions, though.

Wajahat Raja
Wajahat Raja
Wajahat Raja is a seasoned finance writer and with years of experience and a focus on Finance, Insurance, Hedge Funds, and Private Equity. He explores complex financial topics with clarity and depth, delivering content that informs and engages. Wajahat’s work is driven by a passion for making industry developments and trends more accessible to a broad audience, offering insights that are thoughtful, well-researched, and easy to understand.

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