The cryptocurrency market is on the brink of a major milestone as the U.S. Securities and Exchange Commission (SEC) introduces a streamlined process for approving crypto exchange-traded funds (ETFs). This new regulatory framework promises faster approval timelines and broader access for altcoins, providing a significant boost for digital asset adoption among institutional and retail investors alike. Among the leading contenders are XRP, Solana, and Cardano, each bringing unique technical strengths and market appeal to the upcoming ETF era.
Historically, the SEC’s approach to crypto ETFs was slow and meticulous, with each proposal evaluated on a case-by-case basis. This approach often delayed approval for months or even years, frustrating both exchanges and investors looking to diversify beyond Bitcoin and Ethereum. The updated regulations now allow platforms like Nasdaq, NYSE, and Cboe to list digital asset ETFs under a standardized, faster process, with a minimum review time of just 75 days.
Analysts view this change as a turning point for the crypto industry. By reducing bureaucratic hurdles, the SEC is signaling a more open stance toward regulated digital assets, encouraging mainstream investment while maintaining transparency and oversight. This regulatory clarity is crucial for ETFs that include altcoins, as investors and fund managers look for stable, liquid, and technically robust options beyond Bitcoin and Ethereum.
Among altcoins, XRP has quickly risen as a strong candidate for ETF inclusion. Built on the XRP Ledger (XRPL), XRP is capable of handling 1,500 transactions per second with minimal fees and low latency. These features make it highly efficient for cross-border payments and asset tokenization—both key use cases for ETF adoption.
In early September 2025, Nasdaq submitted an ETF proposal featuring XRP as a central asset, highlighting the altcoin’s growing market recognition. With improved regulatory clarity and strong technical foundations, XRP is well-positioned to become the first altcoin approved under the SEC’s new rules. Market observers note that XRP’s combination of speed, scalability, and low transaction costs gives it a competitive edge over other digital assets in the ETF race.
Solana (SOL) is another top contender for altcoin ETFs. Known for its high-speed blockchain, Solana can process thousands of transactions per second at extremely low costs. This makes it a favorite platform for decentralized finance (DeFi) applications and non-fungible tokens (NFTs), which generate high liquidity and transaction volumes.
The strong ecosystem built around Solana makes it attractive to institutional investors seeking exposure to altcoins without the volatility risks associated with smaller projects. ETFs including Solana would provide a regulated entry point into this ecosystem, offering investors the benefits of exposure to a high-performing blockchain with proven scalability and adoption.
Cardano (ADA) takes a more measured approach, focusing on energy-efficient consensus mechanisms and sustainable blockchain development. As environmental, social, and governance (ESG) factors gain importance in investment decisions, Cardano’s low-energy footprint positions it as an appealing choice for more conservative investors.
With a strong foundation in peer-reviewed technology and a reputation for cautious growth, Cardano could become a “safer” altcoin for ETF inclusion. Its methodical approach to development and compliance aligns well with the SEC’s requirements for regulated investment products, making it a natural fit for the new altcoin ETF landscape.
The introduction of altcoin ETFs could transform the way investors access digital assets. For decades, Bitcoin and Ethereum have dominated ETF discussions, leaving altcoins largely underrepresented in mainstream financial products. The SEC’s faster approval timeline opens the door for broader market participation, giving retail and institutional investors the opportunity to diversify portfolios with technically strong altcoins like XRP, Solana, and Cardano.
Financial analysts predict that ETF inclusion could increase liquidity, reduce volatility, and enhance adoption for these altcoins. By providing regulated investment options, ETFs may also encourage cautious investors who previously avoided the crypto market due to security, compliance, or volatility concerns.
While ETFs provide a safer route to digital asset exposure, investors must remain aware of the inherent risks. Market dynamics, regulatory changes, and broader economic conditions can all impact ETF performance. XRP, Solana, and Cardano are technically strong, but no investment is without volatility. Careful research, diversification, and risk management are essential when incorporating altcoin ETFs into investment strategies.
The SEC’s regulatory shift represents a watershed moment for cryptocurrencies and altcoins in particular. XRP, Solana, and Cardano are leading candidates for inclusion in ETFs, each offering unique features that align with investor needs and regulatory expectations. As approval timelines shorten and market interest grows, these digital assets may soon gain a foothold in mainstream finance, transforming how both institutional and retail investors approach crypto investment.
In conclusion, the SEC’s streamlined ETF process marks the start of a new chapter for altcoins. With XRP, Solana, and Cardano at the forefront, investors are likely to see more regulated, high-quality investment options that extend beyond Bitcoin and Ethereum. As adoption accelerates, these altcoins could redefine the digital asset landscape and signal a broader acceptance of cryptocurrencies in the mainstream financial system.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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