Cardano price jumped on Tuesday after Grayscale filed for a spot ADA ETF. The company hopes that the new Securities and Exchange Commission (SEC) will approve crypto ETFs faster than under Gary Gensler.
Let’s explore other blue-chip coins that could soon have ETF applications.
Top Crypto ETF Applications
Companies like Bitwise, Canary, 21Shares, Grayscale, Rex Osprey, and ProShares have filed multiple crypto ETFs. The coins that have the most applications are Solana, Ripple, Litecoin, Dogecoin, Stellar, Hedera Hashgraph, and Bonk.
These are all logical coins to have an ETF. Solana has become the second-biggest blockchain in areas like DeFi and decentralized exchanges.
It houses popular DEX networks like Raydium, Orca, and Meteora. It is also a popular coin with a market cap of over $100 billion.
Ripple is a made-in-America coin widely used in the payment industry. Its stablecoin, RLUSD, is gaining traction as its volume rises. XRP, with a market cap of over $140 billion, is also a logical choice.
Litecoin’s application is easy to approve because it is a Bitcoin hard fork, meaning that the SEC views it as a commodity. Dogecoin is also a proof-of-work coin and is not seen as a crypto security.
Potential Crypto Coin ETFs
Several crypto coins may soon have ETF applications. Chainlink, which has a market cap of over $12 billion, may have a LINK ETF because of its strong fundamentals.
It is the biggest oracle in the crypto industry, plays a leading role in Real-World Asset tokenization, and is part of Donald Trump’s World Liberty Financial portfolio.
Avalanche will also have a spot AVAX portfolio because it is similar to Solana and has the potential to grow its market share.
Avalanche’s numerous growth initiatives and adequate funding may make it an ideal ETF material. It is also advantageous that it is a coin made in the USA.
Polkadot is another blue-chip coin that may see an ETF application. It has a market cap of over $7.5 billion and is currently going through a transition that will make it more accessible to developers.
The new Polkadot 2.0 will remove the need for developers to go through the parachain auctions.
The other potential crypto coins that may have their ETF applications are Shiba Inu, Pepe, Bitcoin Cash, Ondo, and Uniswap.
While these ETF applications sound good, there is a risk that there will not be enough investor demand for these funds.
A good example is that spot Ethereum ETFs have not been well received by Wall Street. They have just $11 billion in assets compared to Bitcoin’s $115 billion.
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