Lucía Peña
A wave of regulatory filings emerged on Friday, signaling the growing interest in spot cryptocurrency exchange-traded funds (ETFs) for altcoins. Grayscale and CoinShares have submitted applications to launch ETFs tracking XRP, Litecoin (LTC), and Solana (SOL).
CoinShares filed registration statements for the CoinShares Litecoin ETF and CoinShares XRP ETF, while the NYSE filed two 19b-4 forms for Grayscale Litecoin Trust and Grayscale Solana Trust. Both Grayscale filings include language outlining plans to convert these trusts into spot ETFs, further expanding their reach in the crypto investment space.
These filings come shortly after significant changes in U.S. leadership. With President Donald Trump beginning his four-year term and former SEC Chair Gary Gensler stepping down earlier this week, the regulatory environment could see a pivot toward more crypto-friendly policies.
Trump has signaled a more welcoming stance toward cryptocurrency, notably by appointing Paul Atkins, a pro-crypto former regulator, to lead the SEC. The agency, which has already approved spot Bitcoin and Ethereum ETFs, could begin considering other altcoin-based ETFs in the coming months.
Growing Appetite for Altcoin ETFs
This influx of applications underscores the growing demand for institutional-grade products beyond Bitcoin and Ethereum. Over the past week, ETF proposals have also been submitted for other cryptocurrencies, including Dogecoin (DOGE). The introduction of products based on XRP, Litecoin, and Solana could diversify the options available to investors, bringing greater legitimacy and institutional interest to these assets.
The SEC has announced the creation of a Crypto Task Force, led by Commissioner Hester Peirce—affectionately known as “Crypto Mom.” This new task force aims to provide clarity on crypto regulation, establish practical paths to registration, and focus on balanced enforcement measures.
The agency plans to host roundtable discussions with industry leaders to ensure transparency and create guidelines for future crypto projects. These efforts could set the stage for clearer rules and streamlined approvals for cryptocurrency ETFs.
Implications for the Market
If approved, these ETFs could make it easier for institutional and retail investors to gain exposure to XRP, Litecoin, and Solana without the need to directly hold the underlying assets. This could significantly boost adoption and liquidity for these altcoins, while positioning Grayscale and CoinShares as pioneers in the rapidly expanding ETF market.
With the regulatory winds shifting, the next few months could prove pivotal for the U.S. cryptocurrency market. As the SEC evaluates these new proposals, the crypto industry watches closely for signals of further mainstream acceptance.
