Cryptocurrency Exchange-Traded Funds (ETFs) potentially expanding to include Solana, Ripple (XRP), Cardano (ADA), and Avalanche (AVAX) following the approval of Bitcoin and Ethereum ETFs.

Cryptocurrency Exchange-Traded Funds (ETFs) potentially expanding to include Solana, Ripple (XRP), Cardano (ADA), and Avalanche (AVAX) following the approval of Bitcoin and Ethereum ETFs.

In the rapidly evolving world of cryptocurrencies, a significant shift is underway as regulatory bodies begin to embrace digital assets. The U.S. Securities and Exchange Commission (SEC) has introduced a new general listing standard that targets cryptocurrencies with at least six months of futures trading on exchanges approved by the SEC, such as Coinbase Derivatives and the CME.

This new standard is a game-changer for altcoins seeking ETF approval. Among the contenders, Solana (SOL), XRP, Cardano (ADA), and Avalanche (AVAX) are gaining attention due to their potential to meet these criteria.

Solana, currently ranked #6 by market cap at over $67 billion, has already made a mark with Solana futures trading on the CME since March 2025. This early entry into the futures market positions Solana as a strong candidate for early ETF approval under the new standard.

XRP, one of the top contenders for altcoin ETFs, also saw its futures start trading on the CME in May 2025. Market analysts predict that an XRP ETF could follow soon, potentially by October 2025.

While Cardano (ADA) and Avalanche (AVAX) are mentioned among the altcoins gaining attention, their futures markets are less established or not explicitly active on Coinbase or CME yet. This means they may require more time or conditions to fulfill the SEC’s futures trading criteria for ETF approval.

Avalanche, another strong contender, offers a unique subnet architecture that enables institutions to create custom, permissioned chains, making it a key contender for enterprise-friendly altcoin ETFs. Its focus on real-world asset tokenization sets it in a prime position for institutional traction. Avalanche's daily transaction volume across its C-Chain averages $600 million.

The SEC's new approach is not limited to focusing on futures market presence. The regulatory body is also working to standardize technical frameworks addressing valuation, custody, and investor risk, which supports smoother approvals for altcoin ETFs such as Solana, XRP, ADA, and others.

Moreover, the SEC has recently expanded its policy by allowing in-kind redemptions for crypto ETFs, reducing operational friction and aligning crypto ETFs with traditional commodity ETFs. This move signals growing regulatory maturity and is expected to further accelerate approval timelines for altcoin ETFs.

In summary, the SEC is transitioning toward a clearer, more structured approach for approving ETFs based on altcoins. The focus is shifting from solely spot market liquidity or other earlier non-derivative factors to market maturity signals like futures trading and operational safeguards.

Sources: [1] ainvest.com, July 31, 2025 [2] cryptomus.com, July 31, 2025 [3] fxleaders.com, July 31, 2025 [4] fintechweekly.com, July 12, 2025

1. The new general listing standard introduced by the U.S. Securities and Exchange Commission (SEC) targets cryptocurrencies with at least six months of futures trading on exchanges like Coinbase Derivatives and the CME, potentially opening the door for Solana (SOL), XRP, and other altcoins to receive ETF approval.
2. Solana, ranked #6 by market cap, has already made a significant move by having Solana futures trading on the CME since March 2025, positioning it as an early contender for ETF approval under the new standard.
3. XRP, another top contender for altcoin ETFs, saw its futures start trading on the CME in May 2025, and market analysts predict an XRP ETF could follow soon, possibly by October 2025.
4. Avalanche's focus on real-world asset tokenization, along with its unique subnet architecture, makes it a key contender for enterprise-friendly altcoin ETFs, despite not having an actively trading futures market on Coinbase or CME at the moment.
5. The SEC's strategy is evolving not only by focusing on the presence in futures markets but also by working to standardize technical frameworks addressing aspects like valuation, custody, and investor risk, which supports smoother approvals for altcoin ETFs such as Solana, XRP, Avalanche, and others.

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