In a significant development for the crypto market, Bloomberg ETF analysts have sharply increased the probability of U.S. regulatory approval for spot exchange-traded funds (ETFs) tied to XRP, Dogecoin, and Cardano. According to the latest analysis, these altcoin ETFs now have a 90% or higher chance of being greenlit by the Securities and Exchange Commission (SEC) before the end of 2025, reflecting a notable shift in regulatory sentiment.
SEC’s New Approach Signals Opportunity for Altcoin ETFs
The optimism from Bloomberg’s Eric Balchunas and James Seyffart comes after recent, constructive engagement between ETF issuers and the SEC. This engagement is seen as a strong indicator that the regulatory environment is becoming more receptive to crypto-based financial products. The analysts highlighted that the SEC’s willingness to communicate and request updates on filings—such as the recent request for Solana ETF issuers to update their S-1 documents—suggests that approvals for a broader range of spot crypto ETFs could be imminent .
Expanding the ETF Landscape Beyond Bitcoin and Ethereum
Until now, the SEC has only approved spot ETFs for Bitcoin and Ethereum, which have already attracted substantial institutional investment. The potential approval of ETFs for XRP, Dogecoin, Cardano, as well as Litecoin, Solana, Polkadot, and Avalanche, would mark a major expansion of regulated crypto investment options in the U.S. market . This move could further legitimize these digital assets and provide investors with more diversified exposure to the crypto sector.
Leadership Change at the SEC: A Catalyst for Change
The shift in regulatory tone coincides with the appointment of Paul Atkins as the new SEC chairman in April. Atkins has publicly committed to a more open and innovation-friendly approach to digital assets, which many in the industry see as a positive step for the future of crypto regulation in the United States .
What’s Next for Crypto ETFs?
With dozens of spot crypto ETF applications currently under review, the market is watching closely for the SEC’s next moves. The increased likelihood of approval for these altcoin ETFs could drive new inflows into the sector and potentially reshape the landscape for both retail and institutional investors.
“Engagement from the SEC is a very positive sign in our opinion,” said James Seyffart, ETF Analyst at Bloomberg, underscoring the growing confidence in the approval process .
