Altcoin ETF demand is forming in the United States as the Securities and Exchange Commission received at least five altcoin ETF filings in the first half of October 2025. The filings arrived even during the U.S. government shutdown, so issuers still expect regulated altcoin ETF products to get attention once reviews restart. Altcoin ETF issuers target the same buyers that used spot Bitcoin ETFs and spot Ether ETFs earlier this year.
Thedemand, according to Leon Waidmann, head of research at Web3 analytics firm Onchain, is the next step after Bitcoin ETF demand and Ethereum ETF demand. “Altcoin ETF inflows are the inevitable next step after Bitcoin and Ethereum ETFs proved institutional demand,” Waidmann told Cointelegraph. He said this is “regulatory confidence translating into capital flows.” His remark shows why altcoin ETF demand appears right after Bitcoin ETF and Ether ETF approval.
Altcoin ETF approval, according to Waidmann, can “open the door for the next wave of institutional buying.” He described it as the same investor group moving from Bitcoin ETF demand to Ethereum ETF demand and then to altcoin ETF demand. Altcoin ETFs in this model are not retail products. They are regulated vehicles for institutions that do not want unregulated exchange exposure.
Ether ETF inflows beat Bitcoin ETF inflows in Q3 2025
Ethereum ETF inflows were stronger than Bitcoin ETF inflows in the third quarter of 2025. Spot Ether (ETH) ETFs attracted about 9.6 billion dollars in Q3 2025, while spot Bitcoin (BTC) ETFs attracted about 8.7 billion dollars, according to SosoValue. Ether ETF inflows above Bitcoin ETF inflows show that regulated investors already accept non-Bitcoin crypto when the structure is the same.
Ether ETF demand matters for the altcoin ETF market because Ethereum is still the second-largest crypto asset and the first non-Bitcoin asset to get broad ETF usage. When Ether ETF inflows pass Bitcoin ETF inflows in one quarter, it sends a signal that the market has room for more regulated crypto products. Waidmann said, “Institutions found Bitcoin via ETFs, now they’re moving into Ethereum, and other altcoins are coming next.”
Bitcoin ETF inflows, according to SosoValue’s all-time chart, still lead the market in total value. However, the Q3 2025 shift shows that ETF flows can rotate when a new, regulated, large-cap crypto ETF appears. This rotation is why analysts connect Ether ETF inflows and altcoin ETF inflows. If investors accepted Ethereum through ETFs, then altcoin ETF products can also receive capital when they list in the U.S.
Smart money positions for altcoin ETF listings
Smart money data supports the altcoin ETF narrative. On-chain data platform Nansen showed that “smart money” wallets held Uniswap (UNI), Aave (AAVE), and Chainlink (LINK) as their top three tokens on Thursday. These are DeFi and infrastructure tokens that can be used in an altcoin ETF basket because they have liquidity, history, and on-chain usage.
Smart Money Large Cap Holdings October 2025. Source: Nansen
Smart money positioning in UNI, AAVE, and LINK means professional crypto traders and funds are not only looking at Bitcoin ETF inflows and Ethereum ETF inflows. They are also preparing for altcoin ETF demand. These tokens are easy to explain to regulated buyers because they have a clear function: decentralized exchange (UNI), decentralized lending (AAVE), and oracle and data feeds (LINK). That makes them reasonable candidates for early altcoin ETF products.
Altcoin ETF issuers will likely look at the same tokens smart money already holds. That creates alignment between issuers, on-chain traders, and institutional ETF buyers. This alignment is important because altcoin ETFs need underlying assets that are not only liquid but also widely recognized in both crypto-native and traditional finance circles.
BlackRock absence could cap altcoin ETF inflows
Altcoin ETF inflows, however, may not match Bitcoin ETF inflows if BlackRock stays out of the first altcoin ETF wave. In 2025, BlackRock’s spot Bitcoin ETF collected about 28.1 billion dollars, making it the only fund with positive year-to-date inflows, according to Vetle Lunde, head of research at K33. Without BlackRock, spot Bitcoin ETFs together showed about 1.27 billion dollars in net outflows year-to-date.
Altcoin ETF inflows could face the same pattern. If BlackRock does not list an altcoin ETF, then cumulative altcoin ETF inflows may stay lower than some analysts expect. The ETF wrapper alone did not keep Bitcoin ETF inflows positive. A large, trusted issuer did. Lunde’s data shows that structure and issuer both matter in ETF markets.
Altcoin ETF products can still come to market, because the SEC already received filings and Ethereum ETF inflows proved that regulated buyers accept non-Bitcoin assets. But the size of altcoin ETF inflows could depend on which issuers participate. That is why analysts track both the number of altcoin ETF filings and the names of the companies behind them.
