Source: Grayscale; Compiled by: Jinse Finance
In the coming weeks, due to new guidelines from US regulators, investors can expect a significant increase in the number of exchange-traded products (ETPs) offering exposure to "altcoins" (crypto assets with a market capitalization lower than Bitcoin).
These crypto assets represent a wide variety of use cases, demonstrating the versatility of public blockchain technology.Exchange-traded products (ETPs) offering spot trading of the Solana network's SOL token have already begun trading. In the coming weeks, due to recent regulatory changes, the number of "altcoins" (crypto assets with a market capitalization lower than Bitcoin) tradable through spot ETP products is likely to increase significantly.
It took more than a decade to introduce Bitcoin ETPs to the US market, from the initial application in 2013 to their official listing in 2024. For new cryptocurrency ETPs, investors can expect a more streamlined listing process.
On September 17, the U.S. Securities and Exchange Commission (SEC) approved general listing standards for cryptocurrency ETPs. The SEC will no longer review each token individually, but will instead assess whether the asset meets certain general standards. If it meets these standards, exchanges can list and trade the ETP after it publishes a valid registration statement. In addition to Solana, Grayscale expects 11 more different crypto assets to meet the listing requirements for ETPs based on the general listing standards (see Chart 1). The number of crypto assets meeting the new standards may increase further over time. Chart 1: Multiple asset portfolios may soon be available as U.S. exchange-traded products (ETPs).
Public blockchains are a versatile and general-purpose technology, and the categories of crypto assets are becoming increasingly diverse. To better categorize and organize them, Grayscale uses a proprietary taxonomy and index tool called "Crypto Sectors," which was developed by Grayscale in collaboration with FTSE/Russell (see Figure 2). Chart 2: Crypto Sector Framework Helps Organize the Digital Asset Market. [Image of chart 2: https://img.jinse.cn/7402845_watermarknone.png] Under the new universal listing standards, altcoins eligible for ETPs (including Solana) cover four of the six major cryptocurrency sectors, representing approximately 11% of the total market capitalization of the cryptocurrency sector (see Chart 3). Including Bitcoin and Ethereum, assets investable by US investors through spot ETP products will account for approximately 90% of the total market capitalization of the cryptocurrency sector. Chart 3: The Crypto Sector Framework Helps Organize the Digital Asset Market. [Image of chart with image source: https://img.jinse.cn/7410741_watermarknone.png](https://img.jinse.cn/7410741_watermarknone.png) [Image of chart with image source: w3o4qmIg47mjO7mLwdbsYeZusL0aImqgz6GfMuaY.png](https://img.jinse.cn/7410741_watermarknone.png) The following is a brief overview of 14 currently listed or soon-to-be-listed ETP assets, including 12 altcoins, and sorted by market capitalization. Investors should consider the unique uses and risks of each token, as well as the potential returns of holding a diversified portfolio of crypto assets. Bitcoin (BTC) Market Cap: $2.2 trillion; Crypto Sector: Currency Bitcoin is the first decentralized blockchain network. It is a peer-to-peer digital currency designed to enable secure, trustless transactions without intermediaries. Bitcoin's supply is transparent and predictable, with a total cap of 21 million coins. Similar to physical gold, Bitcoin's utility stems in part from its immutability and independence from political systems. Ethereum (ETH) Market Cap: $466 billion; Crypto Sector: Smart Contract Platform Ethereum is a smart contract platform and the foundation for many aspects of blockchain finance, including stablecoins, tokenized assets, and decentralized finance (DeFi). Unlike many other blockchains, Ethereum ecosystem activity occurs both on the Ethereum mainnet (Layer 1) and on numerous Layer 2 networks. XRP Ledger (XRP) Market Cap: $150 billion; Crypto Sector: Currency XRP Ledger (XRPL) is a mature blockchain designed to improve cross-border payments and bring other digital financial innovations. Created in 2012, XRP remains one of the largest and most widely traded digital assets. Solana (SOL) Market Cap: $103 billion; Crypto Sector: Smart Contract Platform Solana is a smart contract platform blockchain that stands out for the depth and diversity of its on-chain activity. Today, it leads in user numbers, transaction volume, and transaction fees—arguably the three most important metrics for measuring blockchain activity. Dogecoin (DOGE) Market Cap: $28 billion; Crypto Sector: Consumer & Culture Dogecoin is a fully functional blockchain, similar to XRP Ledger or Solana, but it is based on the "Doge" network meme—a Shiba Inu that has rapidly gained popularity worldwide. Memes can be seen as a tokenized and investable representation of internet culture. Dogecoin's community culture and viral origins have contributed to its enduring popularity. Cardano (ADA) Market Cap: $23 billion; Crypto Sector: Smart Contract Platform Cardano is a smart contract blockchain developed based on peer-reviewed academic research and supported by an active community worldwide. The ADA token powers the Cardano network, enabling users to stake tokens, participate in governance, and make payments. Chainlink (LINK) Market Cap: $12 billion; Crypto Sector: Utilities & Services Chainlink is a decentralized oracle platform designed to connect smart contracts with real-world data, cross-chain messaging, and off-chain systems, providing secure middleware to enable the reliable operation of tokenized assets, decentralized finance, and enterprise-grade blockchain applications. The LINK token is Chainlink's native utility token, used to pay oracle service fees, reward node operators, and serve as an economic and staking asset, coordinating incentive mechanisms and ensuring the security of the Chainlink network. Bitcoin Cash (BCH) Market Cap: $11 billion; Crypto Sector: Currency Bitcoin Cash is a peer-to-peer electronic cash system created after the 2017 Bitcoin hard fork. Previously, there was intense debate surrounding Bitcoin's scaling issues (i.e., whether and how Bitcoin could be improved to provide faster and cheaper transactions). Bitcoin Cash attempts to achieve greater scalability by allowing each block to contain more bytes. **Stellar (XLM)** Market Cap: $10 billion; Crypto Sector: Currency **Stellar is a decentralized payment network designed to facilitate fast, low-cost cross-border transfers between currencies and financial institutions, focusing on connecting traditional banking systems with blockchain-based settlement systems. Lumen tokens (XLM) are Stellar's native token, used to pay transaction fees, help prevent online spam, and act as a bridge currency for efficient exchange between different fiat currencies and digital assets. **Avalanche (AVAX)** Market Cap: $8 billion; Crypto Sector: Smart Contract Platform **Avalanche is a smart contract platform blockchain that provides highly customized solutions for various application scenarios. With its unique design choices, the Avalanche protocol has evolved over time into a diverse, flexible, and multifaceted ecosystem.** Litecoin (LTC) Market Cap: $7.3 billion; Crypto Sector: Currency Litecoin is a decentralized digital currency that provides fast, low-cost global payments, making it a practical alternative to Bitcoin in everyday use. It is based on Bitcoin's source code but generates blocks faster and has lower transaction costs. Litecoin also offers some privacy features. Hedera Hashgraph (HBAR) Market Cap: $8.4 billion; Crypto Sector: Smart Contract Platform Hedera is a permissioned smart contract platform blockchain, overseen by a council of major institutions. Anyone can create applications for the Hedera network, but only designated entities can participate in network consensus and verify transactions. Shiba Inu (SHIB) Market Cap: $5.9 billion; Crypto Sector: Consumption & Culture Similar to Dogecoin, the Shib token is a dog-themed meme coin with economic value as a digital collectible. Unlike Dogecoin, Shib does not operate independently on a blockchain; instead, it exists as a token on the Ethereum blockchain. Polkadot (DOT) Market Cap: $4.4 billion; Crypto Sector: Smart Contract Platform Polkadot is a blockchain protocol designed to be the connecting link of Web 3.0—a vision of digital commerce based on blockchain technology, originally proposed by Polkadot founder and Ethereum co-founder Gavin Wood. In the Polkadot ecosystem, dedicated blockchains known as parachains are connected through a coordinating relay chain.
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