Following Trump’s high-profile announcement of a cryptocurrency strategic reserve, the market’s price performance has been underwhelming, yet this hasn’t stopped traditional financial institutions from making moves. After the SEC approved applications in February from major U.S. financial firms for LTC, DOGE, SOL, and XRP ETFs, further policy support and regulatory easing by the SEC have led to a surge in altcoin ETF developments this week.

Latest Altcoins with ETF Applications

In the U.S., the process of applying for an ETF follows a specific sequence: First, the issuer submits an S-1/S-3 form, followed by the exchange submitting a 19b-4 form. The application then enters a public comment period, after which the SEC reviews and provides feedback before making a final decision. The entire process typically takes 6–8 months, depending on the SEC’s review progress. Below is a list of recent altcoin ETF applications, along with their market performance over the past 30 days, ranked by application date.

ADA（Cardano）

On February 25, the SEC officially accepted an application from NYSE Arca on behalf of Grayscale to list a spot Cardano ADA (Cardano) ETF. Originally submitted on February 10, the ETF will be custodied by Coinbase Custody Trust Company, with BNY Mellon handling asset servicing and administration.

On March 2, Trump mentioned ADA in a social media post about crypto strategic reserves, triggering a 70% price surge that day.

DOT（Polkadot）

On February 25, Nasdaq submitted a 19b-4 application for the Grayscale Polkadot Trust ETF.

HBAR（Hedera）

On February 24, Nasdaq filed a 19b-4 application for an HBAR ETF on behalf of Canary Capital, followed by a March 4 filing for Grayscale’s Hedera ETF.

Hedera is often seen as an underrated crypto asset, and the potential launch of a spot HBAR ETF has generated excitement. Valour Funds has also applied to list an HBAR staking ETP on the European Euronext Exchange, while Canary Capital’s U.S. spot ETF application has further fueled market anticipation, particularly given the evolving post-election regulatory landscape.

AXL（Shoulders）

On March 6, Canary Capital submitted an S-1 application for an AXL ETF.

Additionally, former Coinbase legal chief Brian Brooks has joined Axelar’s new Institutional Advisory Board, emphasizing regulatory coordination and institutional adoption.

Earlier reports indicated that Canary Capital launched the Canary AXL Trust, the first investment trust focused on universal blockchain interoperability protocols, featuring Axelar’s native token. This trust aims to provide institutional investors access to cross-chain interoperability technology, integrating Web3 ecosystems like XRP Ledger, Hedera, Stellar, TON, Sui, Solana, and Bitcoin.

APT（Apts）

On March 6, Bitwise officially submitted an S-1 application to the U.S. Securities and Exchange Commission (SEC) to register a potential Aptos ETF, marking the first step toward launching an Aptos ETF in the U.S..

Aptos, in collaboration with major asset management companies, is working to launch a U.S.-listed ETF, making it one of the few blockchain protocols worldwide to achieve this milestone.

Prior to this, in November 2024, Bitwise had already launched the Aptos Staking ETP on the Swiss Stock Exchange, enabling staking for Aptos tokens.

How Has Ethereum ETF Performed Since Its Approval?

The Ethereum ETF was officially launched on the U.S. capital markets on July 23 last year, with Ethereum trading at around $3,200 on that day. Market data shows that in the six months since its launch, the Ethereum ETF has seen a net inflow of $2.76 billion, which is roughly equivalent to Wall Street purchasing nearly 1% of Ethereum’s total supply. However, Ethereum’s price has dropped to around $2,300.

This decline is partly due to Grayscale continuously selling Ethereum ETF shares, making it the largest seller in the market, which has suppressed Ethereum’s price growth. Additionally, Ethereum is more heavily impacted by whale sell-offs compared to Bitcoin, and it is still in the process of absorbing potential selling pressure from large holders.

On the bright side, Trump-affiliated entity World Finance Liberty has been consistently accumulating Ethereum. The ongoing ETF net inflows and institutional buying by Trump-linked entities suggest that in a progressively deregulated market environment, long-term investors remain optimistic about Ethereum.

By extension, if the altcoin ETFs mentioned earlier receive approval in 2025, these ETFs may provide a gateway for traditional capital inflows. However, this does not necessarily mean that these altcoins will experience a significant price surge.

Crypto ETF 2.0 Under Trump’s Leadership

Looking at the history of crypto ETFs, it is clear that Trump’s return to the White House has been a major bullish factor for the market. Bloomberg analyst Eric Balchunas pointed out that before Trump’s election victory, the approval probability for all crypto ETF applications—except Litecoin—remained below 5%. However, as these applications move through the approval process and the SEC’s decision deadlines approach, the likelihood of crypto ETF approvals is expected to continue rising.

Related reading: “Coinbase 2025 Outlook: More Crypto ETFs on the Horizon; Stablecoins Remain the ‘Killer App’ “

What Impact Will This Have on the Crypto Market?

Bloomberg analysts predict that the SEC will make a decision on proposed altcoin ETFs by October this year. If multiple altcoin ETFs are approved in succession, it is likely that continuous positive sentiment will attract more conservative and institutional investors, reshaping the investor structure of the market. In this policy environment, the crypto market could experience increased liquidity, price appreciation, and structural shifts in investor demographics. Additionally, the approval of more ETF products would bring more capital into the crypto market, further enhancing liquidity and reducing price volatility.

Furthermore, due to the existence of regulatory arbitrage, U.S.-approved ETFs could trigger similar adoption in other countries and regions. This trend could accelerate global cryptocurrency adoption, especially in jurisdictions with looser regulations, where crypto adoption may see rapid growth. The global policy convergence on ETFs would not only lower compliance costs for cross-border transactions but also reduce investor concerns about legal risks, encouraging greater institutional and retail participation. This could accelerate the transition of cryptocurrencies from niche assets to mainstream financial instruments, further strengthening their role in the global economy.

As the Trump administration continues to support the crypto industry, various U.S. states are gradually introducing “strategic bitcoin reserve” legislation. With Republicans controlling both the House and Senate, Congress could potentially pass pro-crypto legislation. If such legislation is enacted, cryptocurrencies might be recognized as a new asset class, separate from both securities and commodities. This would be a historic milestone for the crypto market.

Which Other Altcoins Might Apply for ETFs?

As the Trump administration continues to ease crypto regulations, 2025 could see a surge in altcoin ETF applications. Institutional forecasts suggest that rising demand for crypto ETFs could push their total assets in North America beyond that of precious metal ETFs, making crypto ETFs the third-largest asset class in the $15 trillion ETF industry, trailing only stocks and bonds.

Altcoins closely tied to the U.S. financial ecosystem are more likely to gain approval. For example, ONDO (Ondo Finance), a leading Real-World Asset (RWA) protocol that tokenizes U.S. Treasury bonds and other traditional assets, could be among the first to receive ETF approval for tokenized treasuries. This would position ONDO as a key gateway for traditional institutions looking to allocate funds into crypto assets. Additionally, if the FIT21 Act passes this year, establishing a “decentralized protocol exemption” from securities laws, U.S.-based DeFi tokens such as UNI (Uniswap), MKR (MakerDAO), and AAVE (Aave) could be fast-tracked into the traditional financial system, significantly increasing their adoption in regulated investment products.

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