Analysts expect a new wave of crypto exchange-traded funds as U.S. markets prepare for altcoin exposure
U.S. investors could soon see a new batch of crypto exchange-traded funds (ETFs) hit the market, as Bitwise and Canary prepare to launch funds tied to Solana (SOL), Litecoin (LTC), and Hedera (HBAR).
According to Bloomberg analyst Eric Balchunas, listing notices appeared Monday for Bitwise’s Solana ETF and Canary’s Litecoin and Hedera ETFs, indicating that the funds are expected to go live on Tuesday. The move marks another step in expanding institutional access to alternative digital assets beyond Bitcoin and Ethereum.
Balchunas also noted that Grayscale’s Solana Trust is expected to convert into an ETF, a transition that could further boost liquidity and attract traditional investors to Solana’s ecosystem.
ETF expansion continues despite limited SEC operations
A crypto ETF allows investors to gain exposure to digital assets without directly holding or managing coins. The approval pipeline for such funds in the U.S. has slowed since the federal government shutdown on Oct. 1, though the Securities and Exchange Commission (SEC) continues to function at reduced capacity.
The SEC approved the first U.S. spot Bitcoin ETFs in January 2024, paving the way for major asset managers — including BlackRock, Fidelity, Grayscale, and ARK 21Shares — to enter the market. Since then, issuers have pushed to list ETFs linked to other blockchain networks and staking assets.
Solana has emerged as a leading candidate for ETF growth, largely due to its proof-of-stake design and staking rewards. In July, the REX-Osprey Solana Staking ETF became the first staking-based crypto ETF approved in the U.S., signaling regulatory openness to the model.
US crypto ETFs. Source: CoinMarketCap
Industry experts say Tuesday’s listings could trigger a new wave of institutional engagement. “We’re already working with tier-one investment banks on products related to these ETFs and on accumulation strategies using staked Solana ETF options,” said Thomas Uhm, chief operating officer at Jito, a Solana-based liquid staking protocol.
If approvals proceed as planned, the arrival of Solana, Litecoin, and Hedera ETFs could broaden investor access to alternative digital assets — potentially setting the stage for wider altcoin adoption in regulated markets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.