Institutional Investors Turn to Altcoins as New ETF Filings Reach U.S. SEC

Institutional investors may soon shift their focus to altcoins as the U.S. Securities and Exchange Commission (SEC) reviews five new ETF applications submitted in early October

The U.S. Securities and Exchange Commission (SEC) received at least 5 new applications for altcoin ETFs in the first half of October, even though the government shutdown slowed progress.

Leon Waidmann, the head of research at an on-chain analytics firm, highlighted that each approval could lead to more institutional buying of altcoins, bringing steady investments in the coming years.

In addition, the most successful traders, known as “smart money” by Nansen’s blockchain tracking platform, are also preparing for the approval of altcoin ETFs. Data shows that they hold the largest amounts of Uniswap, Aave, and Chainlink altcoins.

Ether ETF Inflows Outpace Bitcoin as BlackRock Absence Limits Altcoin Gains

Spot Ether ETFs (ETH) drew $9.6 billion in inflows during the third quarter of 2025, surpassing the $8.7 billion recorded by spot Bitcoin (BTC), according to data aggregator SoSoValue.

The change shows that large investors are now turning to Ethereum and other altcoins, signaling an increased demand for alternative cryptocurrencies.

However, some analysts are concerned that altcoins are experiencing limited overall inflows because BlackRock is not participating, even though its Bitcoin ETF has already gathered $28.1 billion in 2025 and remains the only fund with positive year-to-date inflows. 

Vetle Lunde, head of research at K33, reported that spot Bitcoin ETFs have recorded a total net outflow of $1.27 billion year to date without BlackRock’s fund.

The researcher explained that because of how Bitcoin ETFs have performed, BlackRock’s not joining the altcoin ETF wave could limit overall investment and reduce the positive impact on the altcoins themselves.