Altcoin ETF Wave Expected as SEC Deadlines Loom

The crypto market anticipates a potential surge in altcoin ETFs, possibly as early as July, as the SEC faces deadlines on several ETF filings. According to Bloomberg analysts, that’s a robust 90% chance of approval for these filings. This decision may increase access to the market via ETFs that track a group of cryptocurrencies. Some experts believe that active crypto ETFs, including some that invest in memecoins, could be the next big thing to hit the market.

SEC's Decision Looms

The SEC now has until July 2 to rule on as many as 14 different ETF applications. Grayscale and Bitwise are two of the companies competing to be the first to launch ETFs that track a broad slate of cryptocurrencies. If this batch of applications is approved, it may mark the dawn of a new age of cryptocurrency investment.

More notably, these ETFs seek to give investors broad-based exposure to the crypto market, taking on risk across a basket of digital assets. Bloomberg’s analysts have assigned a near total probability of approval, stoking optimism among the industry.

ETFs that track broad crypto indexes may be approved by the SEC next month. - James Seyffart via Eric Balchunas

Memecoin ETF on the Horizon

The possibility of a memecoin ETF too has come into play, generating a lot of excitement and buzz in the crypto community. Eric Balchunas, analyst for Bloomberg, expects to see the first actively managed memecoin ETF. Balchunas thinks something like that is bound to come along by 2026.

Balchunas previously reported that the active crypto ETFs would lead the way. He realized how attractive it would be to invest in a basket of memecoins. The problem is in knowing ahead of time which one will be the winner.

It's like you don't know which one is going to be the winner. So you buy a basket [of them all], it's a no-brainer. - Eric Balchunas

Industry Experts Weigh In

21Shares president Duncan Moir declared at an event in Paris that there is “huge, huge demand for basket products.” Moir thinks this trend is only going to grow in prominence.

I think that's going to be a big trend that we're seeing. - Duncan Moir

Their approval would likely open the door for more specialized products to be approved, such as memecoin ETFs. These moves are yet another sign that acceptance and use of cryptocurrencies continues to grow even further into the mainstream adoption and finance.