The altcoin sector is witnessing renewed momentum, fueled by evolving regulations and a surge in institutional interest in exchange-traded funds (ETFs). 21Shares has recently submitted an application to the U.S. Securities and Exchange Commission (SEC) for a Hyperliquid ETF, which would allow American investors to access the HYPE token—the driving force behind the Hyperliquid decentralized exchange (DEX). This submission is among a
series of more than 90 altcoin ETF applications
currently being evaluated by the SEC, reflecting a rising level of institutional trust in digital assets beyond
Bitcoin
and
Ethereum
. With a market value of $12.7 billion, HYPE is ranked as the 16th largest cryptocurrency, according to CoinGlass. The planned ETF would utilize custodians such as
Coinbase
and BitGo, aiming to resolve longstanding concerns around security and regulatory compliance that have slowed crypto adoption.
This positive trend accelerated with the launch of Bitwise’s
Solana
Staking ETF (BSOL), which achieved a
record-breaking $55.4 million opening
on Nasdaq in 2025. This represented the most successful crypto ETF debut that year and showcased Solana’s attractiveness to institutions seeking staking yields. With $223 million in initial assets, BSOL provides an annual staking yield of about 7%, benefiting from recent SEC guidance that affirmed the legitimacy of staking in proof-of-stake networks. Bloomberg ETF analyst Eric Balchunas observed that the launch surpassed expectations, with Solana’s trading activity significantly outstripping that of
Hedera
and
Litecoin
ETFs. BSOL’s strong performance highlights the crypto market’s evolution, as yield-generating tokens become more integrated into mainstream finance.
Clearer regulations have played a crucial role in this transformation. The SEC’s 2025 decisions regarding staking mechanisms removed key legal obstacles for altcoin ETFs, paving the way for offerings like BSOL to launch without securities-related issues. This regulatory
optimism
follows the greenlighting of Bitcoin and Ethereum ETFs, which have drawn in over $155 billion and $23.4 billion in assets, respectively. These pioneering funds have inspired broader diversification into altcoins, with investors turning to high-performing tokens such as HYPE and Solana, as reported by Coinotag. Meanwhile, platforms like Binance Smart Chain (BNB Chain) are gaining momentum, surpassing
TRON
in stablecoin user activity and capturing 47% of decentralized exchange (DEX) trading volume, according to
ARK Invest data
. BNB’s zero-fee trading initiative has shifted liquidity from Solana to the
BNB
Chain, strengthening its role within the altcoin landscape.
Although there have been setbacks, such as the recent
BNB Chain X account hack
, the overall outlook remains upbeat. The incident, which involved phishing and rug-pull schemes, did not halt BNB’s upward momentum. Instead, the community’s rapid action—boosting the hacker’s
memecoin
price by 500%—demonstrated the robustness of crypto ecosystems. At the same time, projects like BlockDAG are forming strategic alliances (such as with the BWT Alpine Formula 1 Team) to connect blockchain technology with mainstream audiences through
BlockDAG’s F1 partnership
. These efforts highlight the industry’s transition from speculative excitement to growth driven by infrastructure and utility.
Investor actions also mirror this positive sentiment. Ethereum ETFs attracted $9.6 billion in new investments in Q3 2025, surpassing Bitcoin ETF inflows, while significant Ethereum withdrawals from exchanges indicated accumulation ahead of potential price increases, as noted in a
TradingView roundup
. The combination of regulatory advances, strong market performance, and institutional-grade custody is reshaping the digital asset landscape. As the SEC continues to evaluate altcoin ETF proposals, the resulting decisions could pave the way for wider adoption, with tokens like HYPE and Solana at the forefront.