Get ready for new spot ETFs, hints President Nate Geraci

Nate Geraci, President of the ETF shop, shared that major players are interested in new crypto index funds.

In a recent X post, Nate Geraci shared that established asset managers like Grayscale and Bitwise are open to new crypto index funds focused on Solana (SOL), Ripple (XRP), and Hedera (HBAR). This is a step in the right direction, as the crypto community believes, as asset managers begin to look beyond just Bitcoin and Ethereum. Geraci noted that asset managers are looking to expand their portfolios to include other popular digital currencies in the exchange-traded funds market.

The shift towards altcoin ETFs indicates growing interest among institutional investors seeking more diversified exposure to cryptocurrencies. SOL attracted attention due to its scalability and low transaction fees. VanEck recently filed for a spot ETF to capitalize on its growing ecosystem.

In addition to Grayscale & Bitwise’s crypto index fund listings, spot ETF filings are currently available for:

-LEFT
-XRP
-HBAR

I would guess at least one issuer has also taken prospectus in the ADA or AVAX ETF.

— Nate Geraci (@NateGeraci) November 21, 2024

XRP, on the other hand, made headlines after gaining clarity on the legality of its status as a security, which led Bitwise asset management to apply for an XRP spot ETF, showing their confidence in the asset’s prospects for progress in the long term. Moreover, earlier this month, HBAR, backed by a powerful distributed ledger, is one of the assets that attracted an ETF application for which Canary Capital filed an S-1 registration statement typically used during initial public offerings.

Geraci also predicted that issuers may soon start applying for other well-known cryptocurrencies such as Cardano (ADA) and Avalanche (AVAX). Both assets come with strong blockchain ecosystems. ADA emphasizes the security and scalability inherent in proof-of-stake consensus. AVAX also stands out with its sub-second accuracy and multi-chain architecture.

Still, as the need for crypto exposure grows and regulatory clarity improves, market participants remain optimistic that a breakthrough for more altcoin ETFs could occur in 2024.