Altcoin ETF Wave Swells as Yield Becomes Key Differentiator
The crypto ETF landscape has undergone significant changes over the past two years. In 2024, there were only two US spot Bitcoin ETFs, but now Solana and XRP funds are live and taking money. BlackRock is running a staked Ethereum product that pulled in about $100 million on its first day.
The key feature separating winners from losers in this wave of altcoin ETFs is yield. Solana's ETFs launched with staking enabled, making them the first to pay investors a yield. This has attracted money during the downturn, with Solana pulling in $8.1 million in the most recent reporting week.
Other notable filings include Grayscale's proposal to launch a Worldcoin ETF on Nasdaq under the ticker GWLD. This signals that issuers believe the regulatory path extends beyond blue-chip tokens. The CLARITY Act, which would formally divide oversight between the SEC and CFTC, has passed the House but faces uncertainty in the Senate.
The staking feature has changed the game for crypto ETFs. Without it, investors had to choose between holding the coin themselves or giving up yield by using an ETF. Now, with staking enabled, ETFs offer a competitive advantage.