- SEC approval odds for altcoin ETFs soar, yet altcoins lag amid Bitcoin season.
- Institutional investors demand altcoin exposure despite regulatory hurdles and market volatility.
Despite months of speculation and ongoing regulatory back-and-forth, altcoin ETFs in the U.S. have yet to receive the green light.
Delays, amendments, and persistent debates have left the crypto community waiting in anticipation. However, the outlook appears to be turning a corner.
Bloomberg analyst raises odds for altcoin ETFs
According to Bloomberg analysts Eric Balchunas and James Seyffart, the approval of multiple crypto exchange-traded funds (ETFs) is now viewed as almost inevitable.
It could also be a sign that the SEC may be gradually shifting toward a more crypto-friendly stance.
James Seyffart took to X (formerly Twitter) and noted,
“Eric Balchunas and I are raising our odds for the vast majority of the spot crypto ETF filings to 90% or higher. Engagement from the SEC is a very positive sign in our opinion.”
Bloomberg analysts believe the SEC now likely classifies major altcoins like Solana [SOL], Ripple [XRP], Litecoin [LTC], and Dogecoin [DOGE] as commodities, potentially removing a major regulatory hurdle.
Are Polymarket and market trends on the same page?
Polymarket data further reflects this positive sentiment, with approval odds for altcoin ETFs soaring – Solana at 90%, Ripple at 88%, Litecoin at 85%, Dogecoin at 82%, and Cardano at 80%.
Interestingly, while regulatory optimism around altcoin ETFs is reaching new highs, market prices tell a different story.
Despite the optimism, most altcoins continue to trade in the red, largely due to the broader market slump.
Additionally, CoinMarketCap’s Altcoin Season Index currently confirms that we are in a “Bitcoin season,” explaining the lackluster altcoin performance despite ETF hype.
Will this pressure the SEC?
However, despite lingering uncertainty over whether the SEC will greenlight altcoin ETFs or delay them indefinitely, hope remains strong among market participants.
It’s worth noting that even Bitcoin [BTC] ETFs faced nearly a decade-long wait before approval.
In an effort to speed up the regulatory process, asset managers such as VanEck, 21Shares, and Canary Capital have already petitioned the SEC to adopt a “first-to-file” system when reviewing ETF applications.
Interest in altcoin continues
Yet, amidst these ongoing delays in altcoin ETF approvals, institutional enthusiasm for alternative cryptocurrencies continues to grow.
A recent research conducted by Coinbase in collaboration with EY-Parthenon revealed that 73% of institutional investors are now allocating funds to digital assets beyond Bitcoin and Ethereum [ETH], with XRP and Solana emerging as the most favored choices.
Additionally, 68% of respondents showed interest in altcoin-based exchange-traded products (ETPs), particularly single-asset vehicles, indicating that institutional appetite for diversified crypto exposure is only growing stronger, even amid delays and ongoing Bitcoin dominance.
Regulatory uncertainty continues to be a major roadblock in the path of institutional crypto adoption.
While the appetite for altcoin exposure is growing, 52% of investors still cite regulatory ambiguity as their primary concern, followed closely by market volatility (47%) and challenges around secure custody (33%).
Yet, there’s widespread optimism—68% of institutional participants believe that improved regulatory clarity could unlock the next wave of mainstream crypto adoption.
Bitcoin and Ethereum ETF performance
Meanwhile, market trends reflect a mixed sentiment: as of June 20th, spot Bitcoin ETFs recorded $6.4 million in inflows, whereas spot Ethereum ETFs experienced $11.3 million in outflows, according to Farside Investors.
This contrast highlights how investor confidence varies across digital assets, even as anticipation builds around the potential approval of altcoin ETFs.
