A new generation of crypto ETFs is about to enter the Wall Street arena - A list of potential altcoins

In recent years, the crypto ETF market has almost revolved around two pillars: Bitcoin and Ethereum. However, according to observers, this phase may soon come to a close. The Securities and Exchange Commission (SEC) is said to be laying the groundwork for expanding the scale of approvals, opening the door to a range of investment products based on altcoin.

Potential Names for the New Generation of ETFs

Alongside that, projects that have established their position in the market are equally prominent. Solana, with its superior transaction processing speed, XRP from Ripple with its strength in cross-border payments, and Cardano with its focus on building a sustainable smart contract platform are all names with significant potential. Additionally, popular tokens like Dogecoin and Shiba Inu, despite starting with the image of "meme coins", have still proven to attract attention thanks to their large communities and the increasingly developing derivatives market.

Although Bitcoin and Ethereum are almost certain to remain the cornerstones of the ETF ecosystem, the expansion into altcoin could mark a significant turning point. The emergence of altcoin-based investment funds will usher in a wave of more diverse financial products, providing institutional investors with more options for capital allocation while meeting the increasing demand from retail investors looking to access the cryptocurrency market in a safer and more transparent way.

Lessons from Ethereum ETF: Incomplete Success

The case of the Ethereum ETF shows that being approved for listing on an exchange does not mean an immediate "flood" of capital will pour in. When it officially launches in July 2024, the Ethereum ETFs are expected to see significantly lower interest levels compared to initial expectations. This is seen as a setback, especially in the context where many investors once believed that Ethereum would quickly replicate the resounding success of the previously launched Bitcoin ETF.

There are many reasons explaining this unsatisfactory start. First, financial advisors and investment organizations are still in the process of "digesting" the impact of Bitcoin ETFs, which has created a historic turning point and captured most of the market's attention. Second, the structure of the initially launched Ethereum ETFs lacks a key feature: staking. With Ethereum, staking is not only a network security mechanism but also a stable source of profit for investors. The fact that the ETF product cannot integrate this factor has led many investors to assess it as not truly complete, reducing its attractiveness compared to holding ETH directly on the network.

According to analysts, the future of the Ethereum ETF remains bright. Once staking is officially integrated into the fund structure, this product may become much more attractive, as it fully reflects the core economic value that ETH provides. At that point, institutions may view this as a safe and efficient option to participate in the Ethereum ecosystem without needing to directly manage wallets, ETH keys, or face technical operational risks.

In other words, the lesson from the Ethereum ETF is a reminder that financial innovation in the cryptocurrency space does not only come from legal factors, but also depends on designing products that accurately reflect the economic characteristics and technological advantages of the underlying asset.

The future: The wave of altcoin ETFs is approaching

If the SEC decides to "give the green light" to altcoin, the market could witness an important turning point. In the initial phase, it is likely that familiar names such as SOL, XRP, and ADA will lead the first wave of altcoin ETFs. These are projects that not only have a large community but also possess abundant liquidity and have built a relatively complete application ecosystem — a crucial factor in gaining the trust of institutional investors.

Then, the market may welcome more complex products, such as altcoin basket ETFs, allowing investors to access a diverse portfolio of multiple tokens rather than focusing solely on a single project. This approach not only helps to diversify risk but also opens up opportunities to participate in various fields within the blockchain space, from smart contracts, cross-border payments to oracles and Web3 infrastructure.

Although investment demand will certainly not be uniform among asset types — as some projects attract significantly more interest than others — the emergence of altcoin ETFs will mark a historic milestone. For the first time, altcoins are perceived as an official part of Wall Street's standard financial toolkit, rather than just speculative sidelines of the market.

This not only helps to elevate the position of altcoin within the traditional financial ecosystem, but can also drive institutional capital to flow deeper, creating momentum for a new growth era in the crypto market.

Prospects of Impact on Altcoin Prices

The approval of altcoin ETF funds is not only a legal advancement but could also serve as a powerful catalyst for the market value of many leading tokens. Each project has its own characteristics and advantages, which will lead to different reactions to the new wave of institutional capital.

Solana

With its superior transaction processing speed and low costs, Solana has emerged as the center of many DeFi, NFT, and memecoin activities in the past two years. If an official Solana ETF is created, it will not only legalize SOL's position on Wall Street but also bring this project closer to the image of a "second Ethereum" – a platform with the potential for global scalability. The participation of institutional capital will act as a catalyst, potentially driving the price of SOL to new milestones, especially as the ecosystem continues to attract more developers and users.

Currently, at a price of 206.8 USD, Solana is in a strong growth phase, reflecting the increasingly solid confidence of the market. The approval of the Solana ETF could become a "golden turning point," opening up a higher valuation cycle for SOL.

• Short term: With support from ETF expectations, SOL is likely to soon challenge the resistance area of 220 – 230 USD. If it successfully breaks through, the upward momentum could extend to 250 USD, where the market will test the strength of new capital flows.
• Mid-term: In the scenario where the ETF officially comes into operation and attracts strong institutional capital flows, SOL could completely advance towards the range of 280 – 320 USD. These will be new high milestones, while also confirming Solana's position as a leading high-speed blockchain, maintaining DeFi liquidity and attracting a diverse project ecosystem.

However, negative scenarios also need to be considered. If the ETF does not attract capital flows as expected, SOL may adjust to the range of 180 – 190 USD before the market redefines its trend.

XRP

After significant victories in the legal battle with the SEC, XRP is facing a rare opportunity to reaffirm its position. The approval of an XRP ETF would open the door directly to U.S. investors — a group that has been restricted from accessing XRP for many years. This could be a pivotal moment, breaking the long-term accumulation pattern and restarting the growth cycle, especially in the context of the surging demand for cross-border payments.

At $2.88, XRP has broken out of a multi-year accumulation zone and is in a "repositioning" phase. If the XRP ETF becomes a reality, institutional capital could act as a catalyst for the formation of new price scenarios:

• Short term: The initial excitement along with the expectation of an ETF could push XRP to test the psychological resistance area of 3.2 – 3.5 USD. If buying pressure remains strong, a breakout to 4 USD is entirely feasible, marking an important milestone in the growth cycle.
• Medium term: In the scenario where the ETF is implemented and Ripple continues to expand its cross-border payment collaboration network, XRP could aim for the range of 5 – 6 USD. This price will reflect not only the strength of institutional capital but also the new confidence in the practical application capabilities of XRP in the global financial system.

However, it should be emphasized that a strong increase in speed will be accompanied by high volatility. If the ETF does not attract capital flows as expected or the overall market adjusts, XRP could completely retreat to the support zone of 2.5 – 2.7 USD before the market establishes the next trend.

Cardano

Although the development speed of the Cardano ecosystem is often considered slower compared to competitors like Solana or Ethereum, ADA stands out thanks to a sustainable, close-knit community with high loyalty. This is a crucial support that helps Cardano maintain its vitality through many market cycles. If a Cardano ETF is approved, it could become a powerful catalyst for long-term capital from institutions to start paying attention to ADA, especially in the decentralized smart contract segment. This will help Cardano reinforce its position as a blockchain aimed at stability and long-term sustainability.

At a price of 0.84 USD, ADA is in a recovery phase after a prolonged accumulation period. Maintaining momentum in this area indicates that market confidence remains strong. If an ADA ETF emerges, it will serve as a "catalyst" for institutional capital to strengthen and amplify the current upward trend.

• Short-term: Expectations are that the ETF could help ADA soon reach the resistance zone of 0.95 – 1.0 USD. Breaking above the psychological threshold of 1 USD will be an important signal, opening up opportunities for a new bullish cycle.
• Medium term: In the event that the ETF officially comes into operation and attracts significant institutional capital, ADA could extend its upward trend to the range of 1.2 – 1.5 USD. This growth momentum will be more sustainable if Cardano accelerates the deployment of DApps, expands the DeFi ecosystem, and continues to attract more developers.

However, the risks cannot be overlooked. If the ADA ETF does not attract capital flows as expected or the overall cryptocurrency market enters a correction phase, ADA may retreat to the support zone of 0.70 – 0.75 USD before regaining growth momentum.

Other altcoins

The emergence of altcoin ETFs could create a "ripple effect" across the market, extending beyond familiar names like Solana, XRP, or Cardano. Projects focused on network scaling solutions and Web3 infrastructure such as AVAX, DOT, and LINK have a significant opportunity to benefit as the ETF portfolio diversifies.

The common point of these projects is a clear technological infrastructure and practical applications, factors that are often prioritized by institutional investors when choosing to allocate capital. This means that not only major altcoins with strong liquidity are noticed, but also infrastructure projects with solid foundations can witness significant growth.

The emergence of altcoin basket ETFs will further reinforce this trend. Instead of focusing on a single token, basket funds can provide portfolio diversification, allowing AVAX, DOT, LINK, and many other infrastructure tokens to benefit indirectly from new capital inflows.

• Short term: The market effect after the ETF is approved could lead to a rapid increase of around 20–30%, reflecting initial expectations.
• Mid-term: The growth trajectory will depend more on the pace of technological development, the ability to scale the ecosystem, and the level of real-world application, which are key factors to maintain the upward momentum.

The important thing is that the debate in the market has changed significantly. The issue is no longer whether the ETF will expand beyond Bitcoin and Ethereum, but which token will be prioritized for release first.

When that becomes a reality, a new ETF era will officially open — an era where institutional capital flows are redirected, infrastructure altcoins are brought into the investment radar, and the cryptocurrency market moves closer to widespread recognition within the global financial system.

Emma