🌎 Altcoin ETFs Gain Traction Among Major Players

Major Players Show Interest in New Crypto Index Funds Focusing on Altcoins

Nate Geraci, President of the ETF store, recently shared that established asset managers like Grayscale and Bitwise are open to new crypto index funds with a focus on Solana, Ripple, and Hedera. This development indicates a growing interest among institutional investors seeking more diverse exposure to cryptocurrencies.

Geraci noted that asset managers are looking to expand their portfolios to include other popular digital currencies in the exchange-traded funds market. This move toward altcoin ETFs is seen as a positive step by the crypto community, as it shows that asset managers are beginning to look beyond just Bitcoin and Ethereum.

Altcoins Gaining Attention

Solana has gained attention due to its scalability and lower transaction fees. VanEck recently filed a spot ETF to capitalize on its growing ecosystem. Other altcoins, such as XRP, have also been in the headlines after attaining clarity regarding their legality. This led to Bitwise asset management filing for an XRP spot ETF.

HBAR, powered by a robust distributed ledger, is another asset attracting ETF filing. Canary Capital submitted an S-1 registration statement, typically used during initial public offerings.

Potential for More Altcoin ETFs

Geraci also surmised that issuers might soon begin filing for other well-known cryptocurrencies, such as Cardano and Avalanche. Both assets come with robust blockchain ecosystems. ADA emphasizes the security and scalability involved in its proof-of-stake consensus, while AVAX stands out for sub-second finality and a multi-chain architecture.

Market participants remain optimistic that 2024 could witness a breakthrough for more altcoin ETFs, driven by the increasing need for crypto exposure and improving regulatory clarity.