Crypto ETFs Gain Traction: Spotlight on Solana, XRP, Litecoin ETPs, and More

The crypto ETF landscape is heating up as institutional players and asset managers accelerate filings and launch products designed to bring digital assets into mainstream investing. Amid a regulatory environment that’s gradually shifting toward a more crypto-friendly approach, innovative ETF products are emerging that target not only Bitcoin and Ether but also other leading digital tokens. This article takes an in-depth look at the latest developments across Solana, XRP, Litecoin, Franklin Templeton’s Crypto Index ETF, and Grayscale’s Bitcoin Mini Trust ETF.

• A surge in ETF filings is broadening exposure beyond Bitcoin and Ether, with innovative products now targeting Solana, XRP, Litecoin, and multi-asset strategies.

• The SEC's evolving, more crypto-friendly stance under new leadership is creating a more favorable environment for token-specific ETFs, though challenges remain.

• Asset managers like Grayscale and Franklin Templeton are leveraging strong market demand by launching products such as the Bitcoin Mini Trust ETF and Crypto Index ETF, designed for institutional and retail investors alike.

• Grayscale’s Bitcoin Mini Trust ETF stands out with its low fee structure, attracting rapid asset growth, while Franklin Templeton’s Crypto Index ETF offers quarterly rebalancing to adapt to market changes.

• As these ETF products move closer to regulatory approval and market launch, they are set to enhance liquidity, transparency, and diversification in the mainstream digital asset investment landscape.

In recent months, asset managers like Franklin Templeton, Bitwise, and Grayscale have intensified their efforts to secure SEC approval for a wide range of crypto-based ETFs and exchange-traded products (ETPs). The surge of filings reflects growing investor appetite for diversified digital asset exposure and follows a broader trend toward institutional adoption in the crypto market. As the SEC adapts to a new era under its crypto-friendly leadership, issuers are now testing the waters with products that extend beyond traditional Bitcoin ETFs and Ether ETFs.

Polymarket poll on Solana ETF approval in 2025 | Source: Polymarket

Solana, once sidelined by regulatory hurdles, is now at the forefront of ETF innovation. In a notable move, Grayscale recently amended its 19b-4 filing for a spot Solana ETF—a first for SOL-focused products. This amendment marks a pivotal shift, given that previous Solana ETF attempts had been stalled under former SEC Chair Gary Gensler. With the current acting SEC Chair, Mark Uyeda, demonstrating a more accommodating stance, market analysts are cautiously optimistic about future approvals.

Bloomberg ETF analysts have described the SEC’s recent acknowledgment of Grayscale’s filing as a “baby step” into new territory. However, some experts, like James Seyffart, remain skeptical, suggesting that a fully approved spot Solana ETF might still be several years away—potentially not until 2026. Despite these challenges, JPMorgan estimates that an approved Solana ETF could attract between $3 billion and $6 billion in net assets within its first year, highlighting significant market potential. 85% of participants in a Polymarket poll expect a Solana ETF approval in 2025. 

Alongside Grayscale’s efforts, other asset managers such as Canary Capital, 21Shares, Bitwise, and VanEck have refiled for Solana ETF products. This collective push indicates strong industry confidence that regulatory conditions may soon favor the introduction of diversified, token-specific funds, paving the way for a broader range of crypto investment options.

Polymarket poll on XRP ETF approval by 2025 | Source: Polymarket

The spotlight on XRP has intensified following recent 19b-4 filings by the Cboe BZX Exchange on behalf of asset managers including Canary Capital, WisdomTree, 21Shares, and Bitwise. These applications are aimed at launching the first spot XRP ETFs in the United States, potentially providing regulated access to the fourth-largest cryptocurrency by market cap. A Polymarket poll anticipates an 80% likelihood of an XRP ETF getting approved in 2025. 

Trading at approximately $2.35, XRP stands to benefit significantly from these ETF proposals. Institutional interest in XRP is buoyed by predictions from financial institutions such as JPMorgan, which foresees that an approved spot XRP ETF could draw between $4 billion and $8 billion in net new assets within the first year. The move to list XRP-based products signals growing confidence in the token’s long-term viability as part of a diversified digital asset portfolio.

Source: Cointelegraph

In addition to the filings by the Cboe BZX Exchange, initiatives like NYSE Arca’s steps to convert Grayscale’s XRP trust into a spot ETF and CoinShares’ separate filing for a CoinShares XRP ETF underscore a broader trend. Asset managers are aggressively pursuing token-specific ETFs as part of a diversified crypto offering, enhancing the spectrum of available digital asset investment options.

Polymarket poll on Litecoin ETF approval in 2025 | Source: Polymarket

Grayscale is expanding its product suite beyond Bitcoin and Ether. In a strategic move, the asset management firm has filed to list its Litecoin Trust as an exchange-traded product (ETP) on NYSE Arca. With over $215 million in assets under management, the Litecoin Trust is currently the largest investment vehicle for Litecoin, signaling strong institutional interest in this established digital asset.

The push into Litecoin comes on the heels of Grayscale’s highly successful Bitcoin Mini Trust ETF. By diversifying its offerings to include Litecoin, Grayscale is positioning itself to capture a larger share of the growing market for low-fee, performance-oriented crypto investment products. This expansion not only enhances Grayscale’s product suite but also reflects a broader trend among asset managers to develop targeted ETF solutions for a wider array of cryptocurrencies.

Listing a Litecoin ETP reinforces the notion that mature digital assets like Litecoin remain relevant in the evolving crypto ecosystem. With institutional investors increasingly seeking regulated and diversified exposure, products like Grayscale’s Litecoin Trust may serve as a model for future Litecoin ETF and ETP innovations across the crypto spectrum.

Franklin Templeton has joined the fray with its proposed Crypto Index ETF, which is designed to offer investors exposure to the spot prices of Bitcoin and Ether. According to its recent SEC filing, the fund is structured to trade on the Cboe BZX Exchange and is weighted by the market capitalizations of its underlying assets—currently 86.31% Bitcoin and 13.69% Ether.

The ETF will be rebalanced and reconstituted on a quarterly basis (in March, June, September, and December), ensuring that its composition remains aligned with market movements. While the initial focus is on Bitcoin and Ether, Franklin Templeton has signaled that additional digital assets may be considered for inclusion in the future, pending regulatory approval. This flexibility allows the fund to potentially evolve as the crypto market matures.

Franklin Templeton’s filing also highlights several risks, including the competitive threat posed by the emergence or growth of other crypto tokens such as Solana, Avalanche, and Cardano. These factors could impact demand for the Crypto Index ETF, but they also underscore the broader challenge—and opportunity—of maintaining a competitive edge in a rapidly expanding market.

Source: X

Grayscale’s Bitcoin Mini Trust ETF has quickly become one of the standout performers in the crypto ETF space. Launched as a spinoff from Grayscale’s legacy Bitcoin and Ethereum funds, the Mini Trust ETF offers a significantly lower management fee—just 0.15%—compared to its predecessors, which charged fees as high as 1.5% or more. This cost efficiency is a major draw for investors seeking direct Bitcoin exposure without the high fee burden.

The success of the Bitcoin Mini Trust ETF is evident in its rapid growth, having attracted more than $4 billion in net assets within approximately six months of launch. This impressive uptake reflects a strong market appetite for low-cost, performance-oriented crypto investment products that can offer both liquidity and transparency.

By separating the Mini Trust ETFs from its older, higher-cost products, Grayscale has effectively positioned itself to capture a broader segment of the market. The streamlined fee structure and operational efficiency of the Mini Trust ETFs have set a new standard in the industry, prompting fee wars and a reevaluation of cost structures across competing crypto investment products.

The current wave of ETF filings and approvals signals a maturing market where traditional finance and digital assets increasingly intersect. With regulatory bodies like the SEC beginning to embrace a more crypto-friendly stance under new leadership, asset managers are poised to introduce innovative products that offer broader and more diversified exposure to the crypto market.

For retail and institutional investors alike, the emergence of dedicated Solana, XRP, Litecoin, Franklin Templeton’s multi-asset approach, and Grayscale’s low-fee offerings promises enhanced liquidity, transparency, and risk management in an asset class that is rapidly moving from niche to mainstream. As these products move closer to regulatory approval and eventual market launch, the coming months are likely to herald significant changes in how digital assets are integrated into traditional investment portfolios.

Stay tuned to KuCoin News for the latest updates on crypto ETF developments and more insights into the dynamic world of digital asset investing.