Grayscale: The wave of altcoin ETFs has arrived, an overview of 12 altcoin ETF assets.

Source: Grayscale; Compiled by Golden Finance

In the coming weeks, due to new guidelines from U.S. regulators, investors can expect a significant increase in the number of exchange-traded products providing exposure to “altcoins” (cryptographic assets with a market capitalization lower than Bitcoin) (ETP). These cryptographic assets represent a diverse range of application scenarios, embodying the versatility of public blockchain technology.

The exchange-traded product (ETP) for spot trading of Solana network SOL tokens has begun trading. In the coming weeks, due to recent regulatory policy changes, the number of “altcoins” (cryptographic assets with a market value lower than Bitcoin) available for trading through spot ETP products may significantly increase.

The introduction of Bitcoin ETPs to the U.S. market has taken more than a decade, from the first application submitted in 2013 to the official listing in 2024. For the new cryptocurrency ETPs, investors can expect a more streamlined listing process. On September 17, the U.S. Securities and Exchange Commission (SEC) approved a general listing standard for crypto asset ETPs. The SEC will no longer review each token individually but will assess whether the asset meets certain general standards. If these standards are met, exchanges can list and trade the token's ETP after the issuance of a valid registration statement.

In addition to Solana, Grayscale expects that 11 different crypto assets will also meet the listing criteria for ETPs according to the universal listing standards (see Chart 1). Over time, the number of crypto assets meeting the new standards may further increase.

Chart 1: A variety of asset combinations may soon be available in the form of the U.S. exchange-traded product (ETP).

Public chains are a widely applicable general technology, and the category of crypto assets is also becoming increasingly diverse. To better categorize and organize, Grayscale uses a proprietary classification system and index tool called “Crypto Sectors,” developed in collaboration with FTSE/Russell (see Chart 2).

Chart 2: The Crypto Sector Framework Helps Organize the Digital Asset Market

According to the new universal listing standards, the altcoins eligible for ETP include Solana and cover four of the six major cryptocurrency sectors, accounting for approximately 11% of the total market capitalization of the cryptocurrency sector (see Chart 3). Together with Bitcoin and Ethereum, the assets that American investors can invest in through spot ETP products will account for about 90% of the total market capitalization of the cryptocurrency sector.

Chart 3: The crypto sector framework helps organize the digital asset market.

The following is a brief overview of the 14 ETP assets that are currently listed or will soon be listed, including 12 altcoins, sorted by market capitalization. Investors should consider the unique uses and risks of each token, as well as the potential benefits of holding a diversified portfolio of crypto assets.

Bitcoin (BTC)

Market Cap: $2.2 trillion; Crypto Sector: Currency

Bitcoin is the first decentralized blockchain network, designed as a peer-to-peer digital currency that facilitates secure, trustless transactions without intermediaries. The supply of Bitcoin is transparent and predictable, with a total cap of 21 million coins. Similar to physical gold, part of Bitcoin's utility comes from its immutable nature and independence from political systems.

Ethereum (ETH)

Market Cap: $466 billion; Crypto Sector: Smart Contract Platforms

Ethereum is a smart contract platform and serves as the foundation for many aspects of blockchain finance, including stablecoins, tokenized assets, and decentralized finance (DeFi). Unlike many other blockchains, activities within the Ethereum ecosystem occur on both the Ethereum mainnet (Layer 1) and numerous Layer 2 networks.

XRP Ledger (XRP)

Market Cap: $150 billion; Crypto Sector: Currency

XRP Ledger (XRPL) is a mature blockchain designed to improve cross-border payments and bring other digital financial innovations. XRP was created in 2012 and remains one of the largest and most widely traded digital assets to this day.

Solana (SOL)

Market Cap: $103 billion; Crypto Sector: Smart Contract Platforms

Solana is a smart contract platform blockchain, and its depth and diversity of on-chain activities set it apart. Today, it leads in terms of the number of users, transaction volume, and transaction fees - which can be said to be the three most important metrics for measuring blockchain activity.

Dogecoin (DOGE)

Market Cap: $28 billion; Crypto Sector: Consumption and Culture

Dogecoin is a fully functional blockchain, similar to the XRP Ledger or Solana, but it is based on the “Doge” network Meme—a Shiba Inu that became rapidly popular worldwide. Meme coins can be seen as the tokenization and investable embodiment of internet culture. The community culture of Dogecoin and its origins in viral spread have contributed to its enduring popularity.

Cardano (ADA)

Market Cap: $23 billion; Crypto Sector: Smart Contract Platforms

Cardano is a smart contract blockchain developed based on peer-reviewed academic research and supported by an active community around the world. The ADA token powers the Cardano network, enabling users to stake tokens, participate in governance, and pay for transactions.

Chainlink (LINK)

Market Cap: $12 billion; Crypto Sector: Utilities and Services

Chainlink is a decentralized oracle platform designed to connect smart contracts with real-world data, cross-chain messaging, and off-chain systems, providing secure middleware that enables tokenized assets, decentralized finance, and enterprise-level blockchain applications to operate reliably. The LINK token is Chainlink's native utility token used to pay for oracle service fees, reward node operators, and serve as an economic and staking asset to coordinate incentive mechanisms and ensure the security of the Chainlink network.

Bitcoin Cash (BCH)

Market Cap: $11 billion; Crypto Sector: Currency

Bitcoin Cash is a peer-to-peer electronic cash system that was created after the Bitcoin hard fork in 2017. Prior to this, there was intense debate regarding Bitcoin's scaling issues (i.e., whether and how to improve Bitcoin to provide faster and cheaper transactions). Bitcoin Cash aims to achieve greater scalability by allowing each block to contain more bytes.

Stellar (XLM)

Market Cap: $10 billion; Cryptocurrency Sector: Currency

Stellar is a decentralized payment network designed to facilitate fast and low-cost cross-border transfers between currencies and financial institutions, focusing on connecting traditional banking systems with blockchain-based settlement systems. The Lumen token (XLM) is Stellar's native token, used to pay transaction fees, help prevent network spam, and serve as a bridge currency for efficient exchange between different fiat currencies and digital assets.

Avalanche (AVAX)

Market Cap: $8 billion; Crypto Sector: Smart Contract Platform

Avalanche is a smart contract platform blockchain that provides highly customized solutions for various application scenarios. With its unique design choices, the Avalanche protocol has evolved over time into a diverse, flexible, and multifaceted ecosystem.

Litecoin (LTC)

Market Cap: $7.3 billion; Crypto Segment: Currency

Litecoin is a decentralized digital currency that offers fast, low-cost global payments, making it a practical alternative to Bitcoin for everyday use. It is based on Bitcoin's source code but generates blocks more quickly and has lower transaction costs. Litecoin also provides some privacy protection features.

Hedera Hashgraph (HBAR)

Market Cap: $8.4 billion; Crypto Sector: Smart Contract Platform

Hedera is a “permissioned” smart contract platform blockchain, governed by a council made up of major institutions. Anyone can create applications for the Hedera network, but only designated entities can participate in network consensus and validate transactions.

Shiba Inu (SHIB)

Market Capitalization: 5.9 billion USD; Crypto Sector: Consumer and Culture

Similar to Dogecoin, the Shib token is also a dog-themed meme coin with economic value as a digital collectible. However, unlike Dogecoin, Shib does not operate independently on the blockchain but exists as a token on the Ethereum blockchain.

Polkadot(DOT)

Market Cap: $4.4 billion; Crypto Sector: Smart Contract Platforms

Polkadot is a blockchain protocol designed to be the connective tissue of Web 3.0—Web 3.0 is a digital commerce vision based on blockchain technology, initially proposed by Polkadot founder and Ethereum co-founder Gavin Wood. In the Polkadot ecosystem, dedicated blockchains known as parachains are connected through a coordinating relay chain.