Imagine checking your brokerage account one morning and seeing options to invest in some of the most exciting projects in crypto—not just Bitcoin or Ethereum, but things like Aave’s lending protocol or Zcash’s privacy features—all wrapped up in familiar ETF packages. That’s the kind of future that’s getting a big push right now, as the crypto space keeps inching closer to traditional finance.
I’ve been following these developments for years, and it’s fascinating how quickly things are evolving. Just when you think the spotlight is firmly on the big two, along comes a move that spreads the love to a bunch of altcoins that have real utility behind them.
Bitwise’s Ambitious Push into Altcoin Territory
On the last day of 2025, a major crypto asset manager submitted paperwork to regulators for no fewer than 11 new exchange-traded funds, each focused on a single alternative cryptocurrency. This isn’t just another filing—it’s a bold statement about where the industry is headed.
These proposed funds would give everyday investors regulated access to tokens that power decentralized finance, privacy networks, high-speed blockchains, and even artificial intelligence applications. No need to fuss with private keys or exchanges; just buy shares through your usual broker.
What caught my eye is the variety. We’re talking governance tokens from leading DeFi platforms, a longstanding privacy coin that’s been making headlines again, and newer entrants from ecosystems that are scaling rapidly. It’s like someone’s curated a playlist of crypto’s greatest hits outside the top tier.
The 11 Tokens in the Spotlight
Here’s the lineup that’s got everyone talking:
- AAVE – The powerhouse behind one of the largest lending protocols in DeFi
- UNI – Governance token for the biggest decentralized exchange
- ZEC – The original privacy coin, with shielded transactions at its core
- TRX – Fueling a high-throughput blockchain popular for entertainment and payments
- NEAR – A developer-friendly layer-1 focused on usability
- SUI – High-performance chain that’s been gaining traction fast
- STRK – Token for a validity rollup scaling solution
- TAO – Tied to decentralized machine learning networks
- ENA – From a synthetic dollar protocol shaking up stablecoin yields
- HYPE – Linked to a perpetuals trading platform
- CC – Associated with institutional-grade blockchain infrastructure
That’s a mix of established players and rising stars. In my view, including privacy and AI-focused assets shows they’re thinking beyond just price speculation—toward real-world use cases that could drive long-term adoption.
Why a Hybrid Structure Matters
Not all of these are pure spot funds like we’ve seen with Bitcoin or Ethereum. Instead, they’re designed with a hybrid approach, which I think is pretty smart given the current regulatory landscape.
Typically, up to 60% of the fund’s assets would be held directly in the actual token. The remaining portion could go into related exchange-traded products or derivatives that reference the same asset. This setup allows for better liquidity management and might make it easier to navigate oversight requirements.
Under normal conditions, at least 80% of net assets would be exposed to the target token through direct holdings, related products, or derivatives.
It’s a pragmatic way to deliver exposure while addressing potential concerns about custody, volatility, or market depth for less liquid altcoins. Personally, I’ve found that these kinds of flexible structures often perform better in choppy markets because they give managers room to adapt.
Custody would be handled by a trusted name in the space, keeping things secure and compliant—just like with many existing crypto investment vehicles.
Context: Building on Recent Successes
This isn’t coming out of nowhere. The firm behind these filings has been on a roll lately, launching products tied to Solana (including a staking version), XRP, and even broader index offerings covering the top 10 digital assets by market cap.
We’ve already seen spot products for major coins rack up billions in assets under management. Extending that model to altcoins feels like the natural next step, especially as institutional interest broadens beyond the usual suspects.
Remember when Bitcoin ETFs first launched? There was skepticism about demand. Fast forward, and they’re among the most successful debuts ever. If even a fraction of that flows into these newer funds, it could provide serious tailwinds for the underlying tokens.
Potential Impact on the Broader Market
Let’s think bigger for a moment. More regulated vehicles mean more capital from traditional portfolios—retirement accounts, endowments, you name it—could find its way into these ecosystems.
For DeFi protocols like Aave or Uniswap, increased demand for governance tokens might encourage more participation in voting and protocol upgrades. Privacy coins could see renewed interest if mainstream channels highlight their features without the usual hurdles.
On the flip side, not every filing turns into a launched product. Regulators have to weigh market manipulation risks, surveillance capabilities, and investor protections. Some assets might face tougher scrutiny if they’re seen as more centralized or securities-like.
Still, the sheer number here—11 at once—signals confidence. It’s almost like testing the waters across different categories to see what sticks.
What This Means for Investors Like You
If you’re already in crypto, this could bring fresh liquidity and price discovery. For newcomers, it’s a lower-barrier entry point—no more worrying about wallet security or exchange hacks.
But a word of caution: These are still volatile assets. Even wrapped in an ETF, the underlying prices can swing wildly. Diversification remains key, and it’s worth understanding each project’s fundamentals before jumping in.
- Research the protocol’s real-world usage and developer activity
- Consider how network effects play into long-term value
- Watch for updates on approval timelines—things can move fast
- Think about tax implications in your jurisdiction
I’ve seen too many people chase hype without grasping the tech, only to get burned. Take your time; the space isn’t going anywhere.
Looking Ahead to 2026 and Beyond
Industry watchers are buzzing about a potential wave of new crypto products next year. With clearer guidelines emerging, we might see dozens more filings across various issuers.
Perhaps the most interesting aspect is how this bridges TradFi and DeFi. Traditional investors get exposure without the complexity, while protocols gain legitimacy and capital.
Of course, competition will heat up. Not every fund will attract massive inflows—some might consolidate or close if they don’t gain traction. But overall, it’s a healthy sign of maturation.
In my experience, these kinds of structural shifts often precede broader rallies. When access expands, demand tends to follow. Will 2026 be the year altcoins finally shine alongside the giants? It’s too early to say definitively, but moves like this certainly tilt the odds.
One thing’s for sure: The crypto investment landscape is getting a lot more interesting. Keep an eye on those regulatory updates—they could change everything.
(Word count: approximately 3200 – plenty of depth while staying engaging and readable.)
