The U.S. crypto sector is poised for notable growth as
four exchange-traded funds
(ETFs) tied to
Solana
(SOL),
Litecoin
(LTC), and
Hedera
(HBAR) are set to launch this week. These new funds, brought to market by companies such as Bitwise, Grayscale, and Canary Capital, reflect increasing institutional interest in altcoins, following the successful introduction of
Bitcoin
and
Ethereum
ETFs earlier in 2024.
The
Bitwise Solana Staking ETF
(BSOL) will begin trading on NYSE Arca this Tuesday, marking the first U.S. exchange-traded product (ETP) to offer direct spot exposure to
SOL
. The fund will participate in staking, taking advantage of Solana’s average yield of over 7%. Grayscale’s Solana ETF, which is a conversion from a closed-end fund, will follow on Wednesday. These developments come after
Osprey's Staking Solana ETF
(SSK) saw $24 million in net inflows for the week ending October 25, pushing its assets under management past $400 million.
This momentum is further supported by the launch of
ChinaAMC's spot Solana ETF
in Hong Kong on October 27. Experts believe this Hong Kong debut could prompt the SEC to speed up approvals for similar U.S. products, especially as Solana’s market cap approaches $111 billion.
Canary Capital's Litecoin and Hedera ETFs
have already received the green light from the SEC and will be listed on Nasdaq on Tuesday. These ETFs were filed under the SEC’s new "generic listing standards" introduced in September, which require that the underlying assets have traded futures on CFTC-regulated platforms for at least six months. Litecoin, now at $102.56, and Hedera, priced at $0.18, may see greater liquidity as institutional interest in altcoins rises.
Recent changes by the SEC have streamlined the approval process, removing the need for token-specific filings and allowing crypto ETPs to reach the market more quickly. This has led to a wave of new applications, with
over 150 altcoin ETFs under review
for 2025, including 23 focused on Solana.
The upcoming ETF launches have renewed optimism about Solana’s price outlook. With SOL trading near $183, some analysts’
Solana price prediction
suggests a move above $200 could open the door to $230–$300, provided institutional inflows remain strong. On the other hand, if SOL fails to stay above $175, it could drop back to the $160–$165 range. For Litecoin and Hedera, the ETFs may help reduce price swings by drawing in long-term investors, though their market caps ($7.84 billion and $7.76 billion) are still much smaller than Bitcoin’s.
The broader altcoin space still faces liquidity issues. Stablecoin inflows have fallen below $100 billion, a threshold previously linked to Bitcoin’s price stability. Even so, these ETFs could help shift investor sentiment, especially if Ethereum’s recent rebound continues.
Although the SEC’s generic standards have sped up approvals, regulatory uncertainty remains outside the U.S. and for tokens like
XRP
, which are still awaiting decisions. The recent government shutdown also delayed key rulings, though issuers kept discussions ongoing with the SEC.
Industry observers expect more altcoin ETFs to arrive before the end of the year. Bitwise CIO Matt Hougan forecasts that "over 200 products" could be listed on U.S. exchanges within the next year. This trend highlights the growing move by traditional finance to diversify crypto holdings beyond Bitcoin, as Bloomberg ETF analyst Eric Balchunas points out: "Traditional finance investors tend to favor diversified indexes over single-asset tokens."
