Altcoin ETFs are gaining traction after Bitcoin and Ethereum’s success. However, REX CEO Greg King warns that most are “sketchy.”
Altcoin ETFs have become one of the hottest debated topics in the crypto space. This is especially true after the successful rollout of the spot Bitcoin and Ethereum ETFs.
Greg King, CEO of REX Financial, recently shared his perspective on Bloomberg’s “ETF IQ.” According to King, the market is “sketchy”, and issuers must be more selective in choosing which ETFs to issue.
Why Altcoin ETFs Are Rising
The approval of spot Bitcoin and Ethereum ETFs last year created a flood of institutional capital. This success has created room for funds tied to other digital assets, including Solana and even memecoins.
The U.S. Securities and Exchange Commission (SEC) under the Trump administration has taken a friendlier tone towards crypto this year, especially, which is making new applications more likely to succeed.
The SEC’s “Listing Standards” for crypto ETPs is out via new exchange filing. BOTTOM LINE: Any coin that has futures tracking it for >6mo on Coinbase’s derivatives exchange would be approved (below is list). It’s about a dozen of the usual suspects, the same ones we had at 85% or… https://t.co/QlzZnta7Yv pic.twitter.com/CmBr8XxAcM
— Eric Balchunas (@EricBalchunas) July 30, 2025
Companies like REX Financial, Grayscale, VanEck and Fidelity have already filed for altcoin-linked funds. Most of these applications target established blockchains like Solana, while others are looking into exploring highly speculative markets.
Most Altcoins Are “Sketchy”
Despite the speed of these issuances, King continues to call for restraint. He argued that crypto assets tend to become much riskier once you move past the top 10. This is even more true when issuers move past the top 20.
“Crypto gets pretty sketchy below the top 10,” King said. “There’s some significant picking and choosing that has to happen by issuers.”
REX Financial CEO Greg King believes Solana is the story of stablecoin’s future over Ethereum. He speaks with @EricBalchunas on “ETF IQ” https://t.co/aVEoiSkzfo pic.twitter.com/iQx9g4oYJg
— Bloomberg TV (@BloombergTV) August 25, 2025
The risks he pointed out include weak liquidity, lack of utility, extreme volatility and ease of manipulation. Because of this, ETF providers launching products tied to such assets can be risky in terms of reliable custody and investor safety.
More Funds Per Coin, Not More Coins
Instead of more ETFs for more coins, King expects to see a different trend. He expects “a lot of funds per coin.” In essence, several firms should compete to launch ETFs tied to the same major assets.
This is already happening.
Nearly a dozen issuers have filed for a spot Solana ETF, with each of them having slightly different strategies. Some include staking rewards, while others are competing on fees or brand recognition.
The race to capture investors is creating a crowded market for top-tier assets.
Solana’s Strong Case for ETFs
Among all the current candidates, Solana is one of the stand-outs. Performers. King called Solana “the future” for stablecoins and praised its high processing speed and scalability.
He argued that the blockchain has been overlooked in the stablecoin debate, which has largely focused on Ethereum.
Early July saw REX Financial launch a Solana ETF that included staking rewards. This innovation allowed the firm to gain a first-mover advantage in a space that is quickly filling up with competitors.
There are currently nine issuers with filings for spot Solana ETFs, including VanEck, Grayscale, 21Shares, Fidelity Investments and Invesco with Galaxy Digital. The SEC is expected to approve them by October, which would reinforce Solana’s role as a serious rival to Ethereum.