Bitwise prepares offensive on altcoin ETFs: HYPE, AAVE, and 9 more assets in the crosshairs

The landscape of cryptocurrency exchange-traded funds continues to expand at an accelerated pace. Bitwise, one of the leading providers of digital investment products, has submitted a request to the SEC to launch 11 new spot ETFs during 2026, solidifying its commitment to diversify offerings beyond Bitcoin and Ethereum.

Bitwise’s Diversification Strategy

The portfolio of new instruments includes a strategic mix of established protocols and emerging assets. Among the selected are AAVE (currently trading at $166.64), Hyperliquid (HYPE) at $24.80, Uniswap (UNI) at $5.45, and other projects such as Sui (SUI), Starknet (STRK), Near Protocol (NEAR), Bittensor (TAO) at $284.20, Ethena (ENA), Canton Network (CC), and TRON (TRX) at $0.30.

The proposed investment model divides exposure in a 60/40 ratio: 60% will be invested directly in the underlying assets, while the remaining 40% will utilize derivatives and other structured products. This structure allows institutional investors to access these markets with different risk profiles.

The Context: Accelerated Approvals in 2025

During 2025, U.S. regulators approved a significant set of altcoin ETFs, marking a milestone in integrating cryptocurrencies into traditional markets. Solana (SOL) at $141.60, Ripple (XRP) at $2.06, Hedera (HBAR), Litecoin (LTC) at $78.64, Chainlink (LINK) at $13.29, and even a memecoin-based product like Dogecoin (DOGE) at $0.14 received regulatory approval.

As analyst Chad Steingraber noted, this move marks a before and after: “2026 will be the year of the crypto ETF. An entirely new market has just opened for the blockchain industry.”

The Dilemma of Unanswered Institutional Demand in Prices

Although the new altcoin ETFs have generated significant capital flows, the results in terms of asset revaluation have been disappointing. XRP ETFs accumulated $1.16 billion in inflows by December 30, but the token’s price remained below $2. Solana experienced an even more erratic trajectory: its spot ETFs registered $763 millions in inflows and net assets close to $1 billion, but SOL depreciated from $195 to $124 in the same period.

Comparison with Bitcoin and Ethereum

Bitcoin (BTC) reached all-time highs of $126.08K, and Ethereum approached $5,000 in the first half of 2025 thanks to massive institutional demand. However, a correction at the end of the year reversed much of those gains, positioning BTC around $91.51K.

Instruments like Chainlink, Litecoin, and Hedera ETFs showed similar patterns: institutional capital inflows but stagnation or decline in underlying prices. The Dogecoin ETF was the exception, not attracting significant institutional flows.

Market Analysis: Saturation in Sight?

The outlook suggests a disconnect between demand for investment products and the fundamental valuation of assets. According to James Seyffart, ETF analyst at Bloomberg, the sector shows signs of saturation, and a potential correction or purge of less viable products is likely in the near future.

This dynamic raises important questions for 2026: Will the approval of 11 additional ETFs drive a new wave of institutional demand that translates into asset revaluation like HYPE and AAVE? Or will it repeat the pattern of abundant flows but contained prices?

The answer will largely depend on the overall market sentiment and the ability of these protocols to demonstrate utility and adoption within the blockchain ecosystem.