As the SEC is signaling its willingness to approve new altcoin ETFs, 72 active proposals are awaiting a nod.

Bitcoin ETFs dramatically changed the global digital assets market over the past month, and they are performing quite well at the moment.

The SEC is signaling its willingness to approve new altcoin ETFs, with 72 active proposals currently awaiting a nod from the commission. Despite the growing interest from asset managers to launch more altcoin-based products in the institutional market, Bitcoin ETFs command 90% of crypto fund assets worldwide.

Discussing the expansive queue of ETF applications, ETF analyst Eric Balchunas highlighted the sheer volume of proposals pending approval.

“There are now 72 crypto-related ETFs sitting with the SEC awaiting approval to list or list options. Everything from XRP, Litecoin and Solana to Penguins, Doge and 2x MELANIA and everything in between. Gonna be a wild year.”

While new listings can attract inflows and liquidity in these tokens—as seen with the recent approval of Ethereum ETF options—it’s highly unlikely that any crypto fund will replicate Bitcoin’s runaway success in the ETF market, according to Balchunas.

Bitcoin ETFs have dramatically changed the global digital assets market. In the US alone, these funds have reached $94.5 billion in net assets, despite continuous outflows in recent months.

Their early success has opened a new market for crypto-related assets, leading to asset managers applying for more altcoin ETFs.

Earlier this year, the SEC faced criticism for slow-walking applications, particularly for spot Bitcoin ETFs, which are designed to track the price of the cryptocurrency directly.

However, since the summer, the regulator has approved a batch of altcoin ETFs, tracking assets like Solana, Ethereum, and Cardano.

According to Balchunas, these approvals, plus the pending applications, suggest that the SEC is now open to approving a wide range of crypto products.

But any new altcoin product would need a significant value-add to try and impact Bitcoin’s position, which seems unlikely.

Earlier this year, analysts at Morningstar estimated that these products, taken together, couldn’t displace more than 5-10% of Bitcoin’s ETF market dominance.

If there was an event that significantly impacted Bitcoin, it would likely also affect the rest of crypto.

Still, that doesn’t mean that the altcoins ETFs are a futile endeavor. These products have continually created new inflows and interest in their underlying assets, especially with issuers acquiring token stockpiles.

However, it’s important to be realistic. While XRP and Solana ETF approvals could drive new bullish cycles for the altcoin market, Bitcoin will likely dominate the ETF market by a large margin—given its widespread recognition as a ‘store of value’ in the current market.