According to market analysts, institutional investors may turn their attention to altcoins when the next wave of cryptocurrency ETFs reaches the United States.
The U.S. Securities and Exchange Commission (SEC) received at least five fresh altcoin ETF filings in the first half of October, despite the ongoing U.S. government shutdown halting progress.
Any approval could “open the door to the next wave of institutional buying,” said Leon Waidmann, head of research at Web3 analytics firm Onchain.
“The influx of Altcoin ETFs is the inevitable next step after Bitcoin and Ethereum ETFs have proven institutional demand,” Waidmann told Cointelegraph. “It’s regulatory confidence translating into capital flows.”
Ether ETFs Outperform Bitcoin ETF Inflows in Q3
Spot Ether ETF (ETH) data showed $9.6 billion inflows in the third quarter of 2025, surpassing the $8.7 billion generated by Bitcoin (BTC) spot ETF inflows. data SosoValue aggregator.
This shift signals growing institutional demand for alternative cryptocurrency exposure.
This trend could position altcoin ETFs as a catalyst for the next wave of institutional altcoin adoption as fresh regulated instruments, resulting in multi-year inflows, Waidmann said.
“Institutions found Bitcoin through ETFs, now they are moving to Ethereum, and other altcoins will be next.”
The industry’s most successful traders, tracked as “smart money” investors on Nansen’s blockchain intelligence platform, are also seeking approval for altcoin ETFs.
Uniswap (UNI), Aave (AAVE), and Chainlink (LINK) were the three most-held tokens by shrewd money traders on Thursday, data from Nansen’s performances.
Related: Treasury cryptocurrencies are sucking $800 billion from altcoins, and it could continue ‘forever’
Some analysts, however, fear that BlackRock’s absence from altcoin ETFs will result in circumscribed overall inflows, as BlackRock’s Bitcoin ETF has amassed $28.1 billion in investments so far in 2025, making it the only fund to report positive year-to-date (YTD) inflows.
Without BlackRock, spot Bitcoin ETFs have seen cumulative net outflows of $1.27 billion year-to-date, According to to K33 research chief Vetle Lunde.
Related: Arthur Hayes calls for $1 million worth of bitcoin purchases as Japan’s fresh prime minister orders economic stimulus
Based on the dynamics seen in Bitcoin ETF investments, BlackRock’s absence from the altcoin ETF wave could limit cumulative inflows and their potential impact on the underlying tokens, the researcher explained.
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