Recent intelligence indicates that a wave of five spot altcoin Exchange-Traded Funds (ETFs) is set to launch in the coming six days, as major altcoins such as Ethereum (ETH), Solana (SOL), and XRP see a surge in capital inflows. This follows the successful introduction of the Fidelity Solana Fund and the Canary Marinade Solana ETF. The upcoming ETFs include notable names such as the Grayscale Dogecoin ETF, the Grayscale XRP Trust, the Franklin XRP ETF, the Bitwise DOGE ETF, and the Grayscale Chainlink Trust.
Eric Balchunas, a senior ETF analyst at Bloomberg, has noted that the anticipated five spot ETFs are just the beginning. He projects a continuous influx, with over 100 new ETFs expected within the next six months. Meanwhile, James Seyffart, another expert in the field, is monitoring a remarkable backlog of over 150 ETF applications waiting to be launched, anticipating a significant entrance of altcoin spot and leveraged products into the market very soon.
Seyffart commented on the dynamics surrounding the rollout of these altcoin ETFs, emphasizing that Solana’s entry has sparked a promising wave of additional products. He pointed out that four XRP ETFs have already shown strong performance within their first month, illustrating an emerging trend in the altcoin sector.
In contrast, Bitcoin’s popularity among ETFs seems to be waning. Recent figures show that U.S. Bitcoin spot ETFs have faced negative capital flows, bleeding around $151 million in the past 24 hours, even as altcoin ETFs captured approximately $318 million. According to Matthew Sigel, head of digital asset research at VanEck, this downturn in Bitcoin trading can be attributed to conditions unique to U.S. markets, compounded by tightening liquidity and increasing credit spreads, as concerns over artificial intelligence capital expenditures clash with a fragile funding environment.
Despite Bitcoin’s struggles, Bitwise Chief Investment Officer Matt Hougan believes its capital flight is revealing new opportunities for altcoins to better capture their inherent value. He pointed to specific altcoins like Uniswap (UNI), Ethereum (ETH), and XRP as examples of tokens increasingly adept at this value capture.
Hougan highlighted Ethereum’s upcoming Fusaka upgrade, set for December, which promises to enhance token value capture significantly—a topic he feels is underreported. He also noted that there’s a rising interest in XRP, especially as its community explores options like staking that could reshape the economic landscape for token holders.
In a bullish perspective, Ray Youssef, Founder and CEO of crypto superapp NoOnes, discussed the positive impact of ETFs on market liquidity. He noted that these newly launched ETFs are showing early signs of reversing the trend of significant outflows affecting Bitcoin, as evidenced by Solana’s uptick amid turbulent conditions. Moreover, he pointed out that U.S. XRP ETFs have experienced a continuous inflow exceeding $420 million over six days, with over $250 million arriving on their first trading day—marking the strongest debut for an ETF this year.
Youssef asserts that the emergence of altcoin ETFs empowers both retail and institutional investors to explore diversified, high-beta altcoins on a larger scale. While he cautions against expecting an immediate rebound due to current macroeconomic vulnerabilities, he remains optimistic that the momentum generated by these ETFs could entice further investment into select altcoins once Bitcoin stabilizes. Reflecting this optimism, he forecasts that the altcoin ETF season could usher in an end-of-year rally, predicting Ethereum may soar back to over $3,200, XRP could reach $3, and Solana may reclaim the $150 mark if sustained ETF demand persists and macroeconomic volatility subsides.
