Institutional investors could 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 U.S. Securities and Exchange Commission (SEC) received at least five new altcoin ETF filings in the first half of October, despite the ongoing U.S. government shutdown blocking progress.
Each approval could “open the door to the next wave of institutional buying,” said Leon Waidmann, head of research at analytics firm Web3 Onchain.
“Altcoin ETF inflows are the inevitable next step after Bitcoin and Ethereum ETFs prove institutional demand,” Waidmann told Cointelegraph. “It’s about regulatory confidence that translates 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.
This move signals growing institutional demand for alternative crypto exposure.
This trend could see altcoin ETFs catalyze the next wave of institutional adoption of altcoin as new regulated vehicles, leading to years of sustained inflows, Waidmann said.
“Institutions found Bitcoin through ETFs, they are now turning to Ethereum, and other altcoins will follow.”
The industry’s most successful traders, considered “smart money” traders on Nansen’s blockchain intelligence platform, are also positioning themselves for approval of altcoin ETFs.
Uniswap (UNI), Aave (AAVE), and Chainlink (LINK) were the three tokens most held by smart money traders on Thursday, according to Nansen data.
Related: Crypto hoards are siphoning $800 billion from altcoins, and it could be “forever”
However, some analysts are concerned that BlackRock’s absence from altcoin ETFs could lead to 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 see positive inflows year-to-date (YTD).
Without BlackRock’s fund, Bitcoin spot ETFs have seen a cumulative net outflow of $1.27 billion since the start of the year, according to Vetle Lunde, head of research at K33.
Related: Arthur Hayes demands $1M worth of Bitcoin as new Japanese PM orders economic stimulus
Based on the dynamics seen in Bitcoin ETF investments, the absence of BlackRock in the altcoin ETF wave may limit cumulative inflows and their potential effect on the underlying tokens, the researcher explained.
Review: Bitcoin will see “another big push” to $150,000, pressure on ETH increases
