Crypto ETF Applications Surge 70% as Institutions Diversify Beyond Bitcoin

Over 70 cryptocurrency exchange-traded funds (ETFs) are currently awaiting review by the Securities and Exchange Commission (SEC), indicating a growing institutional demand and a maturing U.S. crypto investment landscape. This surge in applications includes a diverse range of digital assets beyond Bitcoin, such as XRP, Litecoin (LTC), Solana (SOL), Dogecoin (DOGE), and various crypto derivatives.

According to an analyst, spot ETF applications for XRP and Solana are particularly popular in the current wave, with 10 institutions applying for XRP-based ETFs and 6 for Solana. This trend suggests a rising institutional interest in diversifying crypto exposure beyond just Bitcoin and Ethereum. The surge in applications reflects growing market demand and a shifting regulatory landscape in the U.S.

Unlike the European market, where crypto ETPs such as Solana are already widely available, U.S. financial institutions and investors operate under a distinct set of conditions and strategic approaches. The latest push for broader ETF products comes at a time when existing U.S.-based Bitcoin ETFs are showing renewed strength. On April 21, the 11 Bitcoin-tracking ETFs recorded a combined $381.3 million in net inflows, marking the strongest day of inflows since January 30. The ARK 21Shares Bitcoin ETF (ARKB) led the charge with $116.1 million in net inflows.

The rebound in ETF flows follows a relatively quiet period and coincides with a strong performance in crypto markets over the Easter weekend. This momentum may be fueling optimism among issuers that appetite for diversified crypto ETFs—especially those tracking altcoins—will only grow. The volume of applications for altcoin ETFs shows there is a difference between European and U.S. market dynamics. Institutional allocation strategies in the U.S. typically begin with Bitcoin as the gateway exposure, but diversification follows a distinct pattern from European markets.

As the market evolves, investor strategies will naturally expand beyond Bitcoin to include a broader set of digital assets, particularly as products with robust liquidity, secure custody solutions, and regulatory clarity become available. The high number of applications—particularly for SOL and XRP—indicates issuers see clear demand despite existing European products. Institutional demand isn’t just about new tokens; it’s about well-structured products that meet professional investment standards.

As the SEC continues to assess the growing list of applications, market participants will be watching closely to see which products gain approval—and how they might reshape the future of crypto investing in the U.S. Recent weeks, however, have been challenging for Bitcoin ETFs, as investor sentiment was dampened by escalating trade war rhetoric. Bitcoin dipped below $100,000 in early February and hit a yearly low of $74,773 on April 7 following widespread tariffs and a downturn in traditional markets. Other major ETF players also saw renewed inflows on April 21. The Fidelity Wise Origin Bitcoin Fund (FBTC) secured $87.6 million, while Grayscale’s Bitcoin Trust (GBTC) and its Mini Trust ETF (BTC) brought in a combined $69.1 million.