New Crypto Index Funds From Grayscale & Bitwise Target Solana (SOL), Ripple (XRP), and Hedera (HBAR)

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

Major players in the cryptocurrency industry are reportedly expressing interest in launching new crypto index funds that will focus on digital assets beyond Bitcoin and Ethereum, with a particular emphasis on Solana (SOL), Ripple (XRP), and Hedera (HBAR). This development is being closely monitored by the crypto community.

According to Nate Geraci, President of the ETF store, asset managers such as Grayscale and Bitwise are open to launching new crypto index funds. Geraci highlighted the potential for asset managers to expand their portfolios by including other popular digital currencies in the exchange-traded funds market.

This move toward altcoin ETFs is driven by the growing interest from institutional investors seeking more diverse exposure to cryptocurrencies. For instance, SOL has gained attention due to its scalability and lower transaction fees, leading VanEck to file for a spot ETF to capitalize on its growing ecosystem.

In addition to crypto index fund uplistings from Grayscale & Bitwise, there are currently spot ETF filings for the following:

- SOL

- XRP

- HBARMany are anticipating that at least one issuer will also apply for an ADA or AVAX ETF.

Recent developments also include XRP attaining clarity regarding legality over its status as a security, which has prompted Bitwise asset management to file for an XRP spot ETF, indicating their optimism for the asset's long-term prospects. Furthermore, HBAR, powered by a robust distributed ledger, is attracting ETF filings, with Canary Capital submitting an S-1 registration statement, typically used during initial public offerings.

Geraci speculated that issuers might soon begin filing for other well-known cryptocurrencies, such as Cardano (ADA) and Avalanche (AVAX). Both assets boast robust blockchain ecosystems. ADA emphasizes the security and scalability involved in its proof-of-stake consensus. At the same time, AVAX stands out for sub-second finality and a multi-chain architecture.

As the need for crypto exposure increases and regulatory clarity improves, market participants remain optimistic that 2024 could witness a breakthrough for more altcoin ETFs.