The Altcoin ETF Battle Has Begun: Who Will Be Approved First?

Original Article Title: Which Crypto ETFs Are Next? Dogecoin, XRP, and Solana Lead the List

Original Article Author: Liz Napolitano, Decrypt

The approval of Bitcoin and Ethereum ETFs in the US last year was just the beginning: major issuers are planning to launch a wider variety of US funds designed to directly track the prices of multiple cryptocurrencies including Dogecoin, Solana, XRP, and even TRUMP coin.

Recently, the traditional financial giant Franklin Templeton submitted a proposal for an XRP spot ETF, which is undoubtedly a significant signal in the cryptocurrency ETF space. While previously Grayscale, Bitwise, WisdomTree, and other cryptocurrency-native firms have submitted similar applications, Franklin Templeton's entry signifies that traditional financial giants are officially entering this emerging field.

Franklin Templeton is a giant asset manager with around $1.5 trillion in assets under management, a massive scale that, while not as dominant as BlackRock, still carries significant weight with its entry. In comparison, BlackRock has not yet entered the altcoin ETF competition.

Roger Bayston, head of quantitative investment solutions at Franklin Templeton, had previously stated in December last year that the ETF legal team will be exceptionally busy in the first half of 2025. The company launched a cryptocurrency index fund last month (currently limited to holding BTC and ETH) and has applied for a Solana ETF.

Below is a list of potential cryptocurrency ETF products that may be launched in the US.

Solana ETF

A spot Solana trading platform exchange-traded fund (ETF) could be a potential alternative to Bitcoin and Ethereum ETFs.

The proposed listing ETFs include VanEck Solana Trust, 21Shares Core Solana ETF, Canary Solana ETF, and Bitwise Solana ETF, which will directly track Solana's price.

Franklin Templeton filed an S-1 registration statement in February, and the Chicago Board Options Exchange (CBOE) submitted a listing rule change application on behalf of Franklin Templeton in March.

Furthermore, some proposed Solana futures ETFs (such as ProShares Short Solana, ProShares 2x Solana, and Vol Shares Solana ETF) will allow investors to make more complex bets on Solana's price movements.

However, Bloomberg analyst James Seyffart stated that spot and futures Solana ETFs may not start trading in the U.S. until 2026 as the U.S. Securities and Exchange Commission (SEC) still needs to review a batch of spot Solana ETF applications. The SEC acknowledged Grayscale's Solana ETF application on February 6 and is seeking public opinion on the application, with an analyst noting that this marks the agency's entry into a "new area."

The SEC typically takes 240 to 260 days to make a decision, but litigation regarding whether Solana is a security could extend this process. Nonetheless, if the spot Solana ETF is approved, the attracted investment funds could be substantial. JPMorgan analysts predict that a Solana ETF could bring in $4 billion to $8 billion in investment.

Dogecoin ETF

Some issuers have expressed plans to launch a spot Dogecoin ETF.

Rex Shares applied to launch the Rex-Osprey DOGE ETF in January, and Bitwise Asset Management also registered a Dogecoin ETF entity in Delaware. Additionally, cryptocurrency investment firm Grayscale plans to launch a Dogecoin ETF and introduced a Dogecoin Trust Fund at the end of January, followed by submitting an application to convert it into an ETF.

The SEC acknowledged Grayscale's application in February but postponed the decision in March, extending the final decision deadline to May 21.

Bloomberg Senior ETF Analyst Eric Balchunas stated in January that theoretically, a spot Dogecoin ETF could be launched as early as April, depending on a rule that allows federal regulators to consider investment product proposals within a quick 75-day timeframe rather than the usual eight to nine months of review.

XRP ETF

Around Ripple-related XRP funds (such as Rex-Osprey XRP ETF, Canary XRP ETF, and 21Shares Core XRP Trust) are currently undergoing reviews.

In early February, the Chicago-based Cboe Exchange filed with federal regulators to list and trade four spot XRP ETFs, showing growing investor interest in funds tracking Ripple Labs' crypto asset. Franklin Templeton also joined the fray in March.

The SEC acknowledged multiple XRP ETF applications at the end of February and stated that comments would be due within 21 days. If XRP ETFs are approved, JPMorgan analysts expect these funds could attract between $3 billion and $6 billion in investments.

Furthermore, XRP futures ETFs (such as ProShares Short XRP and ProShares 2x XRP) are also under consideration, with the former allowing investors to short XRP and the latter enabling investors to make leveraged bets on XRP's future price movements.

Bitcoin Plus ETF

Trump Media and Technology Group's Truth.Fi has applied to register trademarks for two "Bitcoin Plus" products, namely Truth.Fi Bitcoin Plus ETF and Truth.Fi Bitcoin Plus SMA. It is currently unclear what assets these ETFs will hold.

Cryptocurrency Index ETF

In early February, Franklin Templeton submitted an amended application to launch the "Franklin Cryptocurrency Index ETF." The ETF will track the prices of Bitcoin and Ethereum, with weights of 86.31% and 13.69%, respectively, and may include other cryptocurrencies in the future.

Aptos ETF

Cryptocurrency asset management firm Bitwise filed an S-1 document with the SEC in early March, planning to launch an ETF tracking the price of Aptos (APT).

Sui ETF

Canary Capital submitted a Delaware Trust application in early March, planning to launch an ETF based on Sui.

Movement ETF

Rex Shares and Osprey Funds submitted applications in early March to launch an ETF tracking the Movement Network's native token, MOVE.

HBAR ETF

Canary Capital submitted the first HBAR ETF application in November of last year. HBAR is the native cryptocurrency of the Hedera network.

Litecoin ETF

Following Trump's inauguration, a series of Litecoin ETF applications were submitted. CoinShares filed two registration statements for the "CoinShares Litecoin ETF" and "CoinShares XRP ETF," and the New York Stock Exchange indicated that Grayscale is attempting to convert its existing Litecoin Trust into an ETF.

The new applications came about two months after Canary Capital submitted its Litecoin ETF application and a few days after Canary submitted an amended fund application.

Bloomberg analyst Eric Balchunas believes that similar to the spot HBAR ETF, Canary Capital's Litecoin ETF may receive approval earlier than funds based on Dogecoin, XRP, and Solana because Litecoin's regulatory status is less controversial than other coins like Solana.

BONK, TRUMP ETFs

In January, Rex Shares submitted an application to federal regulators planning to launch spot TRUMP and BONK coin ETFs.

Summary

Bloomberg Intelligence analyst Seyffart noted that the SEC is unlikely to make decisions on these applications until SEC Chairman nominee Paul Atkins, nominated by Trump, receives congressional confirmation, and Atkins's confirmation hearing has not been scheduled yet. Furthermore, the approval of spot Bitcoin and Ethereum ETFs took several years, with the SEC previously considering the maturity of the relevant asset futures market as a key approval criterion, which the pending ETF applications currently do not meet.

Nevertheless, analysts speculate that the Litecoin ETF has the highest likelihood of being listed by the end of this year (90%), surpassing Dogecoin (75%), Solana (70%), and XRP products (65%). However, the final outcome still depends on the confirmation of the new helm and their policy direction.

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