The SEC is expected to approve several altcoin ETFs as early as July.
Bloomberg ETF analysts expect a 90% chance of approval for basket crypto index ETFs by July 2.
Solana is believed to be the best candidate for early altcoin ETF approval.
Ethereum staking ETFs are expected to follow and will allow crypto ETFs to become yield-bearing investments.
While a memecoin ETF is considered further off, optimism has been strong so far.
The U.S. Securities and Exchange Commission may soon start a new avalanche of bullishness that sweeps through the crypto space.
According to Bloomberg ETF analysts, the agency could start greenlighting several altcoin exchange-traded funds (ETFs) as early as July.
If these predictions hold true, this could be the start of what many are calling an “Altcoin ETF Summer.”
Here's what we know so far.
Bloomberg ETF analyst James Seyffart recently released a note.
According to the analyst, crypto index ETFs could win SEC approval as soon as next month.
These funds, which would include a basket of some of the top-performing cryptocurrencies, were created to give investors more diversified exposure to the crypto market.
Senior ETF analyst Eric Balchunas echoed the sentiment in a separate post by telling investors to “get ready for an incoming altcoin ETF summer.”
Incoming ETF summer
Moreover, he pointed out that Solana would very likely lead the way.
Recall that Fund issuers like Grayscale and Bitwise have already submitted proposals for these basket products.
According to the analysts, there is now a 90% chance these applications will be approved by the SEC before or on July 2.
This green-light comes after the initial success of spot Bitcoin ETFs earlier in 2024.
These products have so far attracted billions in inflows and helped set crypto ETFs up in the eyes of traditional investors.
The upcoming crypto index ETFs are gaining attention for one big reason.
Rather than investors having to pick individual tokens like Solana, Ethereum or XRP, they can now buy into a whole basket that includes a collection of them.
This approach reduces the risks associated with betting on a single project. It also improves traditional portfolio diversification strategies for many more users.
Among the altcoins, Solana seems to be the front-runner.
According to Bloomberg’s Seyffart, the Solana-based ETFs could be the first to receive approval.
This comes amid reports that the SEC has already started talking with issuers about how staking SOL would work inside a fund structure.
Keep in mind that staking is a major feature in many blockchain protocols like Solana and Ethereum.
It allows token holders to participate in network validation and earn rewards. However, integrating this functionality into a regulated ETF brings up several legal and technical challenges, which is something the SEC is now looking into in more depth.
Staking isn’t just about Solana. Ethereum is also under the SEC’s spotlight.
Last year, the agency approved spot Ethereum ETFs but left out staking, and that may change soon.
Seyffart and Balchunas believe that this new flavor of spot Ethereum ETFs with staking components could follow behind Solana in the approval queue.
This would open up a whole new income-generating tool for more investors.
As such, crypto ETFs will become more than mere speculative tools, and will instead become yield-bearing investments soon.
According to reports, the SEC is also reviewing ETF proposals tied to XRP and other major altcoins.
Even though, decisions on those aren’t expected until later this year, the ongoing dialogue between issuers and the SEC indicates that timelines may shift forward.
While the idea might sound far-fetched, Bloomberg’s Balchunas says a memecoin ETF is not off the table.
In fact, he believes it’s only a matter of time. “There’s a really good chance that an ETF that actively trades memecoins will exist,” he stated.
Though such a product is likely still a few years away (and could possibly arrive in 2026), it is already part of the ETF discussion.
Incoming ETF floodgates
Overall, if the SEC does open the floodgates, it could be the final step before all major brokerages start to offer direct crypto trading within their platforms.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.