October 2025 Crypto ETF Approvals: SEC Fast-Tracks Altcoin Funds with 90% Odds

October is shaping up to be a major month for the global crypto market, as a horde of new exchange-traded funds (ETFs) await a final decision from the U.S. Securities and Exchange Commission (SEC). The securities watchdog is set to make a final decision on 16 crypto-backed investment products next month.

The ETFs are linked to leading altcoins, such as Solana (SOL), XRP, Cardano (ADA), Litecoin (LTC), and the legendary memecoin, Dogecoin (DOGE), with fund issuers and investors keeping a close watch on the developments.

The SEC delayed decisions on several crypto ETFs filed in the early part of 2025, extending the deadlines to October. However, their approval odds surged after the regulator published a new disclosure guidance for digital asset custody, staking, and fraud/misconduct risk, shortening the approval process amid a friendlier approach by the Trump administration.

The U.S. President has been vocal about his support for the crypto industry, announcing plans to establish a Strategic Bitcoin Reserve and Digital Asset Stockpile, banning the development and use of central bank digital currencies (CBDC) nationwide, and signing into law the GENIUS Act – the first comprehensive crypto regulation in the United States to oversee dollar-pegged stablecoins. Trump also launched his own memecoin and holds a stake in the decentralized finance (DeFi) company, World Liberty Financial (WLFI), which issues the USD1 stablecoin.

SEC’s New ETF Rule Speeds Crypto Fund Approvals, October Odds Hit 90%

The most significant overhaul under the White House’s direction came at the SEC, where Gary Gensler, the Biden-appointed chairman of the agency, and crypto’s public enemy, was replaced by the more crypto-friendly Paul Atkins. This regime change triggered swift actions to enhance regulatory clarity and stimulate the industry’s growth across the country. Part of this process was the establishment of the new SEC Crypto Task Force in January 2025, which is responsible for developing a comprehensive framework for crypto assets.

On September 17, the SEC Commissioner Mark Uyeda, head of the Crypto Task Force, approved a new listing standard for commodity-based trust shares, allowing exchanges like the Nasdaq, NYSE Arca, and Cboe to list qualifying exchange-traded products (ETPs) without having to go through the standard, time-consuming full case-by-case 19b-4 rule filing approval process. Bloomberg analyst James Seyffart said at the time that the policy change is a positive move that will speed up the registration process for crypto ETPs. Fellow ETF expert Eric Balchunas also speculated there could be a wave of crypto product approvals, with at least 22 coins with futures listings on Coinbase that would be eligible for “spot ETF-ization” in the coming weeks and months.

This policy change shortened the approval timeframe from up to 240 days to 60-75 days, if the product meets the regulatory requirements. Hashdex, a leading crypto ETF issuer, expanded its fund to include XRP, SOL, and Stellar (XLM). Along with the generic standards approval, the SEC also approved Grayscale’s Digital Large Cap Crypto Fund for trading under the new regime, a product providing investors with multi-crypto exposure in large-cap assets – BTC, ETH, XRP, SOL, and ADA.

There are 16 crypto ETFs up for a final decision by the SEC throughout October, starting with Canary Capital and Grayscale’s Litecoin ETFs on October 2, followed by Solana-backed funds from Grayscale, VanEck, 21Shares, Bitwise, and CoinShares, and ending with WisdomTree’s XRP and Grayscale’s Cardano fund on October 23. Below is a list of upcoming ETF approvals next month, sourced from data shared by Seyffart:

Will October’s Crypto ETF Approval Cycle Trigger an “Altcoin Season”?

Analysts at crypto exchange Bitfinex predicted in August that the altcoin season could stem from approvals of the next wave of crypto ETFs. Meanwhile, Nate Geraci, a prominent ETF analyst and president of NovaDius Wealth Management, said in a Monday X post that the early weeks of October will be “enormous” for spot crypto ETFs, as all the filings mentioned above approach their deadlines.

Crypto trader ‘Daan Crypto Trades’ called October the “ETF month”, highlighting that none of the funds come from BlackRock and Fidelity, issuers of the world’s largest Bitcoin and Ethereum spot ETFs. He claimed that it is “something to watch out for”. In June, Seyffart predicted 90% odds of the SEC approving various crypto ETFs before their final deadlines..

The regulator greenlighting BTC and ETH spot ETFs in 2024 marked a significant milestone for the crypto market, introducing them to the $62.8 trillion U.S. stock market. The move also created investor demand for funds providing exposure to large-cap and popular altcoins and even memecoins.

In the first three weeks of September, U.S. Bitcoin ETFs attracted approximately $2 billion in inflows, reversing the outflow trend from the previous month. Solana (SOL) backed funds also recorded 21 consecutive weeks of net inflows. However, towards the end of the month, both BTC and ETH products saw nearly $667 million in outflows, reflecting a broad-based risk-off sentiment driven by macroeconomic uncertainty and inflationary pressures.

The outflows occurred amid heightened volatility, triggered by Bitcoin’s price slipping below $109,000 on September 26, and Ethereum briefly dropping below $4,000. Despite the recent outflows, long-term trends suggest strong institutional interest in leading crypto assets.

As of September 2025, Bitcoin ETFs hold approximately 1.47 million BTC in their reserves, representing about 7% of the alpha crypto’s total supply. Meanwhile, the spot Ether ETFs manage around $28.8 billion in ETH, representing approximately 5-6% of its nearly $500 billion market capitalization. Bitcoin ETF inflows now exceed the asset’s daily issuance number, with 72% of bitcoins now considered illiquid. These metrics offer a glimpse into the prospects of the upcoming crypto ETFs, which are backed by some of the largest digital assets by market cap.