Market analysts suggest that institutional investors might shift focus to altcoins with the impending arrival of cryptocurrency exchange-traded funds (ETFs) in the United States.
During the first half of October, the US Securities and Exchange Commission (SEC) received at least five new altcoin ETF filings, even as the ongoing US government shutdown hampers progress.
Leon Waidmann, head of research at Onchain, remarked that each approval could “open the door for the next wave of institutional buying.”
“Following the institutional demand seen with Bitcoin and Ethereum ETFs, altcoin ETF inflows are the next inevitable step,” Waidmann told Cointelegraph. “This reflects regulatory confidence translating into capital flows.”
Ether ETFs surpass Bitcoin ETF inflows in Q3
According to data aggregator SosoValue, spot Ether (ETH) ETFs drew in $9.6 billion during the third quarter of 2025, surpassing the $8.7 billion from spot Bitcoin (BTC) ETF inflows.
This shift indicates a growing institutional interest in alternative crypto investments.
Waidmann stated that altcoin ETFs could catalyze a new wave of institutional adoption, potentially leading to years of sustained inflows.
“Institutions found Bitcoin through ETFs; now they’re exploring Ethereum, with altcoins next.”
Traders recognized as “smart money” on Nansen’s blockchain intelligence platform are also preparing for the approval of altcoin ETFs.
As of Thursday, the three most held tokens by smart money traders were Uniswap (UNI), Aave (AAVE), and Chainlink (LINK), according to data from Nansen.
Related: Crypto treasuries siphon $800B from altcoins, and it might be ‘forever’
However, some analysts worry that the lack of BlackRock’s involvement in altcoin ETFs could limit overall inflows, as BlackRock’s Bitcoin ETF has already secured $28.1 billion in investments in 2025, making it the only fund with positive year-to-date (YTD) inflows.
Without BlackRock’s fund, the spot Bitcoin ETFs reflected a cumulative net outflow of $1.27 billion year-to-date, as per K33’s head of research, Vetle Lunde.
Related: Arthur Hayes calls for $1M Bitcoin as new Japan PM orders economic stimulus
Lunde explained that the dynamics observed in Bitcoin ETF investments suggest that the absence of BlackRock from altcoin ETFs may restrict cumulative inflows and their potential positive impact on the underlying tokens.
Magazine: Bitcoin to see ‘one more big thrust’ to $150K, ETH pressure builds
