Altcoin ETFs may not see much uptake among investors even if they launch in the US this year.
Current State of Altcoin ETFs
Asset managers have filed numerous applications to launch US altcoin ETFs, including Solana, XRP, and Litecoin. Analysts expect many to gain regulatory approval in 2025, but initial demand is expected to be weaker compared to Bitcoin and Ether ETFs.
Early Adopters and Expert Opinions
Experts suggest investors already holding altcoins are likely to keep them on spot exchanges. Professional wealth managers and institutional investors favor index funds tracking the crypto market broadly. Bryan Armour from Morningstar noted that for BTC and ETH, some institutions waited for ETF structures.
Advantages and Market Projections
Some managers, like 21Shares, remain optimistic, forecasting demand to exceed $14 billion. Key ETF benefits include institutional pricing and secure custody. There is also interest from professional advisors in adding altcoin ETFs for portfolio diversification.
Despite optimistic projections, analysis suggests actual demand for altcoin ETFs may be significantly lower than anticipated, which is crucial for future investment decisions.
