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SEC’s New Rules Accelerate ETF Approvals, Altcoins Step Into the Spotlight

By JuneSep 23, 2025

The ETF spotlight is now moving beyond Bitcoin and Ethereum, with altcoin ETFs for XRP, Litecoin and Cardano in the queue. These upcoming products could shape the next phase of adoption.

The U.S. Securities and Exchange Commission (SEC) has taken a major step toward streamlining the exchange-traded fund (ETF) approval process. On September 18, 2025, the SEC approved Generic Listing Standards for Commodity-Based Trust Shares, a move designed to significantly shorten the time it takes for ETFs to enter the market.

Under the new rules, exchanges can now list and trade Commodity-Based Trust Shares that meet the generic standards without having to submit a separate proposed rule change under Section 19(b) of the Exchange Act. In practical terms, this means less red tape and quicker pathways for ETF products, especially those tied to digital assets and other spot commodities.

What It Means for ETFs

For issuers and investors, this approval brings clarity and efficiency. Instead of waiting months for case-by-case approvals, compliant ETF applications can move through the system much faster. This not only broadens investor choice but also supports innovation in the ETF market, particularly for products backed by cryptocurrencies and other alternative assets.

What to Expect After a Crypto ETF Launch: Lessons from BTC, ETH, and the New DOGE ETF

The launch of ETF for cryptocurrency is often hailed as a milestone, bringing institutional legitimacy, increased liquidity, and potential price catalysts to the asset. However, outcomes aren't always straightforward. Based on historical patterns from Bitcoin and Ethereum ETFs, as well as the recent Dogecoin ETF debut, expectations can range from short-term volatility to long-term growth.

Initial Hype and "Sell the News" Events

ETF approvals typically generate buzz, leading to pre-launch price rallies as speculators bet on inflows. But post-launch, a "sell the news" dip is common, where prices correct after the event materializes.

For example, the first U.S. REX-Osprey Dogecoin spot ETF briefly pumped the price by about 4.5% on launch day, reaching around $0.28. However, over the last 7 days, DOGE has dropped 9%, now trading at approximately $0.24.

Does ETF Volume Directly Correlate with Price?

Not directly, but there's often a positive relationship. Net inflows reflect buying pressure, which can tighten supply and push prices up, especially in illiquid markets. ETF inflows and volumes are often more of a sentiment signal than a direct, mechanical driver of price changes for cryptocurrencies like $BTC and ETH. They act as a real-time gauge of market confidence, institutional appetite, and broader investor psychology, rather than a guaranteed cause-and-effect mechanism.

In summary, while inflows and volumes are bullish indicators, correlation isn't 1:1. External factors like Fed policies or halvings often dominate.

Upcoming ETF Filings to Watch

With the new framework in place, several ETFs are now positioned to move forward more smoothly. ETF filings across Solana, XRP, and Dogecoin is now in motion, with major issuers from VanEck to Grayscale lining up products awaiting SEC approval.

The ETF race is heating up, with filings now stretching beyond blue-chip crypto into altcoins.

ETF Odds According to Polymarket

On Polymarket, traders are actively speculating on which ETFs might get the green light next. Cardano leads the pack with a 91% probability of approval in 2025, reflecting strong market confidence. Litecoin follows closely at 95%, suggesting similar optimism. Meanwhile, sentiment is far weaker for more speculative assets like Pepe, which holds just 11% odds despite relatively high engagement.

 

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June joined the crypto space in 2021. She's passionate about data, blockchain innovation, and everything Web3.