- Solana has eight pending ETF applications.
- XRP has seven ETF applications submitted.
- Grayscale aims to convert five of its trusts into ETFs.
The US Securities and Exchange Commission (SEC) faces a significant backlog in the digital asset sector, with at least 92 cryptocurrency exchange-traded product applications pending review.
Experts indicate that Solana (SOL) and XRP (XRP) are at the forefront of these submissions, each with numerous applications going through the review process.
This trend reflects a surge in institutional interest for altcoin exposure through regulated investment options, while the SEC continues to determine its position on crypto products.
The frequency of new applications has spiked over recent months, indicating a market readiness for a broader adoption of crypto ETFs.
Solana and XRP lead with 15 ETF applications
Solana and XRP have positioned themselves as leaders among altcoins in terms of ETF interest.
Analyst James Seyffart noted that Solana currently has eight ETF applications, while XRP has seven.
These tokens stand out among the most actively sought-after crypto assets, following Bitcoin (BTC) and Ether (ETH).
Analyst Eric Balchunas mentioned on April 21 that at that time 72 crypto-related ETFs were pending SEC review.
Now, with the number at 92, an additional 20 applications have emerged within a mere four months, indicating growing momentum in the industry.
These filings propose not only exposure to Solana and XRP but also include other altcoins, as well as three ETFs related to Bitcoin and Ether.
Grayscale and 21Shares advocate for Ether staking ETFs
Major players Grayscale and 21Shares are also awaiting SEC approval as they seek to launch Ether staking ETFs.
Recently, the SEC clarified that certain liquid staking activities may not fall under its regulatory oversight, a change that could influence how these applications are reviewed.
Grayscale is also pursuing the conversion of five of its existing trusts into ETFs, encompassing three publicly traded funds and two private trusts that cover Litecoin, Solana, Dogecoin, XRP, and Avalanche.
Approval of these conversions could provide ETF access to a wider array of cryptocurrencies.
Market analysts predict ETF approvals will stimulate altcoin rallies
The potential effects of SEC decisions on altcoin markets are a primary concern among traders.
Bitfinex analysts highlighted on Monday that a significant rally among altcoins may not materialize until more crypto ETFs receive approval.
This perspective emphasizes the importance of regulatory clarity in shaping both institutional and retail engagement in the sector.
Additionally, market commentators, like NovaDius Wealth Management president Nate Geraci, have pointed to the numerous applications as a sign that “crypto ETF floodgates are about to open soon.”
BlackRock leads the way with $71.40 billion in ETF inflows
While applications continue to accumulate, global asset manager BlackRock has established a strong lead in the crypto ETF space.
Its iShares Bitcoin Trust ETF (IBIT) has attracted $58.28 billion in net inflows since its inception.
The iShares Ethereum Trust ETF (ETHA) has garnered $13.12 billion in inflows, according to Farside Investors’ data.
BlackRock’s IBIT fund now holds over 3% of Bitcoin’s total circulating supply. Recent reports suggest that ETHA could soon outpace Coinbase as the largest single holder of Ether.
Interestingly, IBIT now generates more annual fee revenue for BlackRock than its flagship S&P fund, iShares Core S&P 500 ETF (IVV).
This is attributed to the fee structure, where IBIT has an expense ratio of 0.25%, compared to just 0.03% for IVV.
