U.S. Approves First Spot Altcoin ETFs: Solana, Hedera, and Litecoin Gain Regulated Access as “Altseason 2025” Narrative Builds

Edward M Francis
Oct 28
3 min read

Canary Capital and Bitwise Asset Management have officially launched the first U.S. spot ETFs tied to Solana (SOL), Hedera (HBAR), and Litecoin (LTC).
Spot altcoin ETFs are expected to rival Bitcoin, posing a significant competition.

U.S Approves Spot Altcoin ETFs

In a landmark development for the crypto industry, Canary Capital and Bitwise Asset Management have announced the launch of the first-ever U.S. spot exchange-traded funds (ETFs) tied to major altcoins, Litecoin (LTC), Hedera (HBAR), and Solana (SOL).

According to Reuters, the ETFs will begin trading on Tuesday, even as the ongoing U.S. government shutdown limits normal operations at the Securities and Exchange Commission (SEC).

Canary Capital will debut its Litecoin and Hedera ETFs on the NASDAQ exchange. At the same time, Bitwise will roll out the Bitwise Solana Staking ETF (BSOL) on the NYSE Arca, offering investors an annual yield of up to 7% through on-chain staking.

A Milestone for Crypto Regulation

The launches are made possible by a recent SEC rule change that streamlines the approval process for crypto ETFs. In mid-September, SEC commissioners voted to allow three national securities exchanges to adopt generic listing standards for cryptocurrency and commodity ETPs, eliminating the need for lengthy product-specific reviews.

This change allows firms like Canary and Bitwise to bring crypto ETFs to market more efficiently, a significant step toward the mainstream integration of digital assets.

Canary CEO Steven McClurg confirmed that his firm had “several interactions with the SEC” before the shutdown, ensuring the new products were ready for launch. He added that additional ETF products are expected to roll out “in the coming weeks and months.”

Altseason 2025: Capital Rotation on the Horizon

The approval of these spot ETFs has reignited market excitement around the “Altseason 2025” narrative, the anticipated period when altcoins are expected to outperform Bitcoin.

Crypto analyst Dan Gambardello suggests that this wave of regulatory approval, coupled with easing macroeconomic pressures and a likely dovish pivot from the Federal Reserve, could set the stage for a massive capital rotation.

“Capital is moving from gold to Bitcoin and now to altcoins through regulated channels,”

Gambardello noted.

With gold prices showing signs of topping out, institutional investors appear ready to diversify further into the crypto space.

Market Outlook: SOL, LTC, and HBAR Set for Breakouts

Early market reactions have been strong: Hedera (HBAR) surged more than 16% following the ETF announcement, trading around $0.21 at press time. Analysts expect Solana (SOL) and Litecoin (LTC) to follow suit, potentially breaking above their all-time highs (ATHs) from the 2021 bull market.

SOL remains one of the strongest-performing altcoins, with analysts projecting a parabolic move in 2025. LTC has gained bullish momentum after years of consolidation and could rally past $400. HBAR’s institutional exposure via NASDAQ may help it sustain upward momentum.

What This Means for the Crypto Market

The successful listing of these altcoin ETFs marks a pivotal shift in institutional accessibility. For the first time, U.S. investors can gain regulated exposure to non-Bitcoin cryptocurrencies through exchange-traded products, a development that could attract billions in new inflows.

With more than 100 additional spot crypto ETFs reportedly in the pipeline, this could be just the beginning of a broader wave of regulated crypto investment vehicles.

As ETF.com’s Dave Nadig put it: