Altcoin ETFs Are Coming—But Don’t Expect Bitcoin-Level Success

Key Takeaways

• Altcoin ETFs made their long-awaited debut, led by HBAR, Litecoin, and Solana.
• Despite the hype, early trading shows little investor enthusiasm or liquidity.
• Bitcoin remains the benchmark for institutional confidence and market depth.
• Without BlackRock’s involvement, altcoin ETFs may capture only 20–40% of Bitcoin’s flows.

When the SEC approved the first Bitcoin (BTC) spot ETFs in early 2024, it marked the dawn of a new financial era.

For the first time, Wall Street institutions could legally and directly gain exposure to crypto’s biggest asset. Billions poured in. Records were shattered. Bitcoin soared.

Fast forward to late 2025, and the script seems ready for a sequel — this time starring altcoins.

The SEC has relaxed the path for altcoin-based ETFs, paving the way for funds tied to Solana (SOL), XRP, Litecoin (LTC), and Hedera (HBAR).

Optimism ran high: more than 90 applications for spot altcoin ETFs are currently under SEC review, and the market was buzzing about a fresh wave of institutional inflows.

But when the first funds finally launched in late October, the reception was — well — muted.

Altcoin ETFs Debut to a Cold Reception

On October 29, Canary Capital launched the first U.S. spot ETFs for Litecoin and HBAR.

The debut, however, was met with a collective shrug from investors.

The numbers told the story: zero inflows on the first trading day.

Litecoin’s ETF managed about $1 million in volume, HBAR just $8 million.

Even the more talked-about Bitwise Solana Staking ETF (BSOL), which launched a day earlier, barely cracked $55 million in volume — respectable, but nowhere near groundbreaking.

For context, Bitcoin ETFs saw $4.6 billion in volume on day one when they launched in January.

By October 2025, they’ve amassed a combined $129 billion in assets, with nearly $63 billion in cumulative inflows.

That’s the gulf altcoin ETFs are staring at.

Why Altcoin ETFs Won’t Eclipse Bitcoin

To understand why altcoin ETFs are struggling, you have to start with Bitcoin.

Bitcoin is more than just the first cryptocurrency; it’s the only one that institutions truly trust.

Bitcoin’s $2.22 trillion market capitalization dwarfs the combined $1.63 trillion value of all altcoins, which make up just 42% of total crypto market cap.

Institutions view Bitcoin as “digital gold” — a scarce, decentralized, and censorship-resistant store of value.

It’s also the only crypto with over a decade of futures market surveillance, giving regulators and traders alike the data confidence they crave.

Altcoins, on the other hand, are still seen as speculative high-beta assets tied to short-term narratives like DeFi, gaming, or memes.

Data backs this up: 77% of Q3 2025 crypto inflows went to Ethereum, while Bitcoin captured the lion’s share with $26.9 billion in year-to-date net inflows.

Without BlackRock’s involvement, total flows into altcoin ETFs could be 50–70% lower, according to K33 Research.

That trust gap extends beyond ETFs.

Over 120 public companies collectively hold more than 1.65 million BTC, worth roughly $184 billion — nearly 8% of total Bitcoin supply.

It’s a testament to Bitcoin’s acceptance as a reserve asset, a status no altcoin has achieved.

While some firms are experimenting with digital asset treasuries (DATs) tied to Ethereum, Solana, and even BNB, their true resilience will only be proven when they survive their first bear market.

Regulatory Shadows and Market Skepticism

The regulatory overhang hasn’t helped either.

While Ethereum gained clarity through the 2025 CLARITY Act, which formally classified it as a utility token, most other altcoins remain in a gray zone.

XRP still carries the baggage of its SEC lawsuit. Solana continues to battle reputational issues after repeated…