Following the approvals of Bitcoin and Ethereum ETFs, a surge of applications for altcoin-based exchange-traded products has emerged, with 92 crypto ETFs currently awaiting decisions from the U.S. Securities and Exchange Commission. Bloomberg Intelligence ETF analyst James Seyffart revealed that Solana (SOL) leads with 16 applications, closely followed by XRP with 15. Other notable altcoins with multiple filings include mixed asset funds (9), Ethereum (6), while Bitcoin, Dogecoin (DOGE), and Litecoin (LTC) each have 4 applications.
However, Seyffart issued a stark warning, indicating that many of these altcoin ETFs are likely to fail, particularly those tracking tokens with low market capitalization and liquidity. He emphasized that the probability of significant capital inflows for some ETFs is "almost zero," and predicted eventual delistings for those unable to attract investor interest. This risk is especially pronounced when five or more applications target the same asset, creating oversaturation.
Major asset managers like BlackRock, Grayscale, Franklin Templeton, and VanEck are among the applicants. Notably, BlackRock's existing crypto ETFs have seen massive inflows—$58.28 billion for its Bitcoin fund (IBIT) and $13.12 billion for its Ethereum fund (ETHA)—highlighting the potential market impact of future approvals. Analysts suggest that broader altcoin rallies may depend on these ETF approvals, with expectations for decisions in September and October.