Crypto ETF Approval Expected Soon, Analysts Predict 75% Chance for Spot Altcoin Funds by 2025
The U.S. Securities and Exchange Commission (SEC) may soon approve a range of spot altcoin exchange-traded funds (ETFs), with a decision potentially coming as early as July 2. On that date, the SEC is required to make final rulings on multiple altcoin ETF proposals.
According to Bloomberg ETF analysts Eric Balchunas and James Seyffart, there is now a 75% or greater likelihood that the SEC will approve several spot altcoin ETFs by the end of 2025. The analysts point to the growing momentum behind these funds as a sign that the SEC is shifting towards a broader acceptance of digital assets beyond just bitcoin and ether.
At present, eight different spot fund proposals are under review by the SEC, covering a variety of altcoins including solana (SOL), litecoin (LTC), dogecoin (DOGE), XRP, cardano (ADA), avalanche (AVAX), polkadot (DOT), and hedera (HBAR). Of these, index and basket-style ETFs, which combine multiple cryptocurrencies into a single fund, are seen as the most likely to gain approval, with analysts assigning a 90% probability to these proposals.
The first major decision deadline is set for July 2, when the SEC must respond to fund proposals filed by firms such as Grayscale, Bitwise, Franklin Templeton, and Hashdex for basket-style ETFs. In contrast, decisions regarding single-asset ETFs, such as those for SOL, DOGE, XRP, and ADA, are expected in October. Additional rulings are anticipated in November and December. These deadlines are final, meaning the SEC will no longer have the option to delay its decisions.
While some issuers have filed for funds tracking smaller-cap tokens like SUI, Trump Coin (TRUMP), and Melania Coin (MELANIA), these proposals have not yet reached the 19b-4 filing stage, which is necessary for the SEC to review them formally.
Seyffart noted that SUI’s prospects may align with those of other altcoin ETFs. “I’ll need to dig deeper for an exact figure, but I’d expect its odds to be similar to those of the other altcoin proposals,” he remarked.
The outlook for altcoin ETFs has improved considerably following President Donald Trump’s return to the White House and his appointment of crypto-friendly Paul Atkins as SEC Chairman. Atkins has emphasized that innovation in the sector has been hindered and that the current regulatory framework requires significant updates to accommodate the evolving crypto landscape.
