The crypto landscape is once again about to be rocked by seismic change. With the debut of Bitcoin and Ethereum ETFs, the market is now preparing for the expected onslaught of altcoin ETFs. Whether you’re a long-time crypto veteran or just taking your first steps into the space, knowing what’s ahead and how you can get ready is important. Miles O’Connor, the independent analyst at BlockOpulent, decodes the signals, dissects the possibilities, and delivers the insights you need to navigate this evolving terrain.

The Approvals Timeline: A Glimpse into the Future

Asking when altcoin ETFs will arrive is akin to asking when the tide will come in, but there are key signs that can better hone the timeframe. Miles O’Connor points out that the chalkiest initial decisions on these funds might not arrive until Q3 or Q4 of 2025. But with some reviews already deferred until January 2026, investors should expect a longer wait as well.

October 2025 is coming up fast. This will bring the final regulatory deadlines for most altcoin ETF applications still under review. This simultaneously creates a perfect storm moment for the cryptocurrency market. The SEC will likely soon lay bare its decisions on these applications.

So, save the date for July 13, 2025! That’s when we expect Grayscale to file their Cardano ETF application, with the final deadline being October of 2025. The public review period for the WisdomTree XRP ETF started on May 28, 2025, marking another step toward its approval. Final deadlines for Dogecoin ETFs currently range from June through January 2026. This enormous difference points to the possibility that approval times are great outliers.

The Contenders: Which Altcoins Lead the Pack?

Though nothing is set in stone, a few altcoins are already establishing themselves as the leading contenders in the ETF dash. Based on Miles O’Connor’s thorough analysis, there are certain altcoins that are more likely to get approved than others.

  • Solana (SOL): With a 95% chance of approval, Solana is considered a near-lock. Multiple asset managers, including 21Shares, VanEck, and Franklin Templeton, have already filed for a spot Solana ETF, signaling strong institutional interest.
  • XRP: Also boasting a 95% approval chance, XRP has attracted multiple filings, including from WisdomTree and Canary Capital. Ripple CEO Brad Garlinghouse believes XRP could capture a significant share of the global payments sector, further bolstering its appeal.
  • Litecoin (LTC): With a 95% chance of approval, Litecoin has seen filings from Grayscale Investments and others. The SEC's decision to leave the Litecoin ETF ruling window untouched when postponing Solana and XRP ETFs suggests a favorable outlook.
  • Dogecoin (DOGE): While slightly lower at 80-90%, Dogecoin still holds a strong chance of approval. Bloomberg analyst Eric Balchunas gives it a 75% probability, and multiple asset managers are optimistic about its prospects.
  • Cardano (ADA): Cardano has a 90% chance of approval, along with Avalanche (AVAX) and Polkadot (DOT), which have 75% chances of approval.

Altcoin ETFs: A Double-Edged Sword

Despite their promise, altcoin ETFs can come with unique risks for investors. Knowing these differences is important in order to address these gaps with smart, equitable policies.

So what are some ways you can position your portfolio ahead of altcoin ETFs, as they’ll likely be here sooner than we think. Miles O’Connor offers these actionable steps:

  • Diversification potential: A way to broaden their portfolios beyond Bitcoin and Ethereum, potentially capturing gains from promising altcoins.
  • Professional Management: Access to the expertise of fund managers who actively manage the ETF's holdings.

The upcoming altcoin ETF approvals are shaping up to be one of the biggest developments for the cryptocurrency industry. Know what to expect in potential backfill timelines, know who is most likely to be the backfill candidate. Get your portfolio in shape today to take advantage of this changing landscape. Like always, be sure to do your own due diligence and talk to a financial advisor before investing.

  • Accessibility: An easier entry point into the altcoin market without the complexities of direct purchase and storage.
  • Security: A secure and regulated way to invest in altcoins, mitigating the risks associated with self-custody.

However, both seasoned and new investors should be aware of:

  • Volatility: Altcoins are inherently more volatile than Bitcoin and Ethereum, and altcoin ETFs will reflect this.
  • Fees: Management fees and expense ratios can eat into returns, so it's crucial to compare costs across different ETFs.

Preparing Your Portfolio: Riding the Altcoin Wave

So, how can you prepare your portfolio for the potential arrival of altcoin ETFs? Miles O’Connor offers these actionable steps:

  1. Allocate to existing cryptocurrency ETFs: Start by allocating a portion of your portfolio to established Bitcoin and Ethereum ETFs. For instance, consider allocating 75% to the Purpose Bitcoin ETF (BTCC) and 20% to the Purpose Ethereum ETF (ETHH).
  2. Consider altcoin ETFs with staking capabilities: The Purpose Solana ETF (SOLL) is one of the first ETFs to offer staking capabilities, allowing the fund to earn native staking yields directly from the Solana network.
  3. Diversify with other cryptocurrency ETFs: Other notable funds include the Bitwise Crypto Industry Innovators ETF (BITQ), Valkyrie Bitcoin Miners ETF (WGMI), and Valkyrie Bitcoin and Ether Strategy ETF (BTF).
  4. Be aware of management fees and expense ratios: The management expense ratio for BTCC is 1.31%, while SOLL charges a lower 0.39% management fee.
  5. Consider unhedged variants: Unhedged variants of BTCC and ETHH are available under the tickers BTCC.B and ETHH.B, respectively, for investors who don't mind currency risk or want to avoid hedging costs.

The impending altcoin ETF approvals represent a significant milestone for the cryptocurrency market. By understanding the potential timelines, identifying the likely candidates, and preparing your portfolio accordingly, you can position yourself to potentially capitalize on this evolving landscape. As always, remember to do your own research and consult with a financial advisor before making any investment decisions.