Bitwise ramps up altcoin ETF push for 2026 — but will it move markets?
Digital-asset manager Bitwise is preparing a major expansion into altcoin exchange-traded products next year. An SEC filing shows the firm has applied for 11 new U.S. spot crypto ETFs, targeting a diverse group of tokens including Aave (AAVE), Zcash (ZEC), Uniswap (UNI), Hyperliquid (HYPE), Sui (SUI), Starknet (STRK), Near Protocol (NEAR), Bitensor (TAO), Ethena (ENA), Canton (CC), and TRON (TRX).
Bitwise’s proposed structure is notable: the funds would allocate 60% to direct holdings of the underlying assets, with the remaining 40% invested via derivatives and other ETPs. If approved and launched, these products would broaden institutional access to smaller, non-Ethereum Layer 1s, DeFi tokens and privacy/utility coins.
2025’s approvals opened the door — and questions
Regulators already greenlit a wave of altcoin ETFs in 2025, including Solana (SOL), Ripple (XRP), Hedera (HBAR), Litecoin (LTC), Chainlink (LINK) and even a memecoin product, Dogecoin (DOGE). That momentum has encouraged traditional financial players to seek more blockchain exposure — and industry voices expect 2026 to be another banner year. “2026 is going to be year of the crypto ETF. A whole new market has just opened up to crypto,” analyst Chad Steingraber said.
But demand hasn’t always translated into immediate price gains
Large inflows into these new products haven’t uniformly driven token prices higher. Bitcoin and Ethereum benefited from institutional demand in H1 2025, hitting record highs (BTC briefly topped $126,000 and ETH neared $5,000) before the late-2025 market pullback. By contrast, many recently approved altcoin ETFs have seen sizable institutional interest without a matching price rally:
- XRP ETFs drew about $1.16 billion in cumulative inflows as of Dec. 30, yet XRP traded muted below $2.
- U.S. spot SOL ETFs posted roughly $763 million in inflows and nearly $1 billion in net assets since debuting in October, according to SoSo Value — while SOL fell from ~$195 to $124 over the same stretch.
- LINK, LTC and HBAR ETFs showed similar patterns: steady demand but limited upward price action. The DOGE ETF has, to date, attracted little institutional capital.
Why flows haven’t always moved markets
Several factors can mute price impact: ETF allocations can be hedged or synthetically balanced, inflows may be modest relative to circulating supply, and broader market sentiment often outweighs product-level demand. Bloomberg ETF analyst James Seyffart cautioned that the ETF space may be getting crowded and could face a shakeout, signaling that not all new products will enjoy sustained investor interest.
Bottom line
Bitwise’s 11-fund filing underscores growing institutional appetite to package and access altcoins. But history from 2025 shows ETF approvals and inflows do not guarantee immediate rallies in underlying tokens. For investors, the development expands access and liquidity options — but also raises questions about which products will attract durable demand once the initial excitement fades.
Disclaimer: This article is for informational purposes only and is not investment advice. Cryptocurrency trading is high-risk; do your own research before making any financial decisions. © 2025 AMBCrypto (rephrased).
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