Nate Geraci, President of The ETF Store, recently announced that exchange-traded fund (ETF) applications have already been submitted for Solana (SOL), XRP, and Hedera (HBAR). He also noted that other altcoins such as Cardano (ADA) and Avalanche (AVAX) are also in line to apply for ETFs. These developments indicate the interest of institutional investors who are focusing beyond Bitcoin and Ethereum, and some experts believe that this move could signal the start of a new “alt season.” So why are these altcoins attracting the attention of major investors? And how could these developments shape the future of cryptocurrency investment? Here are the details...
Are ETF Applications Coming for HBAR Coin and Other Altcoins?$HBAR
Interest in altcoins is increasing in the cryptocurrency world. The start of exchange-traded fund (ETF) applications for altcoins such as Solana (SOL), XRP and Hedera (HBAR) stands out as a development that increases institutional interest in assets other than Bitcoin and Ethereum. Strong projects such as Cardano (ADA) and Avalanche (AVAX) are also expected to join this list. These applications may accelerate the rise of altcoins and open the door to a new "altcoin season" in the crypto market. Solana (SOL) draws attention with its advantages such as low transaction fees and scalability. VanEck filed a spot ETF application to benefit from Solana's growing ecosystem. XRP, on the other hand, renewed confidence with regulatory clarity, and Bitwise filed a spot ETF application for XRP. Hedera (HBAR) received many applications with the powerful features of its distributed ledger technology, including Canary Capital's S-1 filing.
Projects like Cardano (ADA) and Avalanche (AVAX) stand out as strong candidates for future ETF applications. Cardano attracts investors with its focus on security and scalability, while Avalanche stands out with its fast transaction confirmations and multi-chain capabilities. These projects offer opportunities for institutional investors to diversify their portfolios with altcoins. The increasing interest in altcoins other than Bitcoin and Ethereum could signal a significant shift in crypto investment strategies.
Geraci also drew attention to Bitcoin’s limited supply. He stated that approximately 20 million of the total 21 million Bitcoins have already been mined and approximately 4-5 million Bitcoins have been permanently lost. It is stated that Satoshi Nakamoto has more than 1 million Bitcoins in his wallet and spot ETFs have a total of 1 million Bitcoins. MicroStrategy is expected to increase the amount of Bitcoin it owns to 400,000. This limited supply increases the value of Bitcoin, making it more attractive to institutional investors.
Bloomberg ETF analyst Eric Balchunas predicts that an ETF application for Dogecoin (DOGE) could be due on December 31, 2024. The growing interest in cryptocurrency ETFs reflects financial institutions’ desire to offer more products to meet the demand for crypto asset investments. The rise of altcoin ETFs and the limited supply of Bitcoin point to a fundamental shift in cryptocurrency investment strategies. This trend suggests that crypto assets are increasingly becoming part of mainstream financial markets.