Institutional investors may turn their attention to altcoins as the next wave of cryptocurrency exchange-traded funds (ETFs) arrives in the United States, according to market analysts.
The US Securities and Exchange Commission (SEC) received at least five new altcoin ETF filings during the first half of October, despite the ongoing US government shutdown stalling progress.
Each approval could “open the door for the next wave of institutional buying,” said Leon Waidmann, head of research at Web3 analytics firm Onchain.
“Altcoin ETF inflows are the inevitable next step after Bitcoin and Ethereum ETFs proved institutional demand,” Waidmann told Cointelegraph. “This is regulatory confidence translating into capital flows.”
Ether ETFs surpass Bitcoin ETF inflows in Q3
Spot Ether (ETH) ETFs attracted $ 9.6 billion in inflows during the third quarter of 2025, surpassing the $8.7 billion generated by spot Bitcoin (BTC) ETF inflows, according to data aggregator SosoValue.
That shift signals increasing institutional demand for alternative crypto exposure.
The trend may see the altcoin ETFs catalyzing the next wave of institutional altcoin adoption as new regulated vehicles, resulting in years of sustained inflows, Waidmann said.
“Institutions found Bitcoin via ETFs, now they’re moving into Ethereum, and other altcoins are coming next.”
The industry’s most successful traders, tracked as “smart money” traders on Nansen’s blockchain intelligence platform, are also positioning themselves for the approval of altcoin ETFs.
The Uniswap (UNI), Aave (AAVE) and Chainlink (LINK) were the three most held tokens by smart money traders on Thursday, data from Nansen shows.
Related: Crypto treasuries siphon $800B from altcoins, and it might be ‘forever’
However, some analysts are concerned that BlackRock’s absence from the altcoin ETFs will result in limited overall inflows, as BlackRock’s Bitcoin ETF has amassed $28.1 billion in investments so far in 2025, making it the only fund to log positive year-to-date (YTD) inflows.
Without BlackRock’s fund, the spot Bitcoin ETFs recorded a cumulative net outflow of $1.27 billion year-to-date, according to K33’s head of research, Vetle Lunde.
Related: Arthur Hayes calls for $1M Bitcoin as new Japan PM orders economic stimulus
Based on the dynamics seen in Bitcoin ETF investments, BlackRock’s absence from the altcoin ETF wave may limit cumulative inflows and their potential tailwind effect on the underlying tokens, the researcher explained.
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