Bitcoin exchange traded funds (ETFs) have witnessed a surge in investor interest this year, driven largely by BlackRock’s involvement. The question arises: How will the landscape change without BlackRock’s influence on altcoin ETF development? 2021 saw a total of $26.9 billion flow into Bitcoin ETFs alone, primarily fueled by BlackRock’s massive contributions, which offset losses from other issuers like Grayscale Investments. BlackRock’s impact is evident in the success of its Bitcoin and Ethereum ETFs: the Blackrock iShares Bitcoin Trust ETF (IBIT) brought in $28.1 billion, while the Blackrock iShares Ethereum Trust ETF (ETHA) saw similar dominance in inflows on various occasions. However, BlackRock has chosen to abstain from the current wave of altcoin ETFs taking off. Companies like 21Shares, Canary Capital, Fidelity, and others have applied for SEC approval for their own altcoin ETFs; however, unlike these companies, BlackRock hasn’t followed suit. Given the impressive performance of the initial Bitcoin and Ethereum ETFs, future funds may find it challenging to gain similar traction. In other words, despite high expectations surrounding the launch, overall inflows might be limited. Altcoin ETFs Awaiting SEC Approval VanEck submitted a filing for the Lido Staked Ethereum ETF in mid-October, followed by a statutory trust registration in Delaware, just a week later. This fund aims to track spot Lido Staked ETH (stETH) prices based on MarketVector’s LDO Staked Ethereum Benchmark Rate index. Bitwise Asset Management also filed an S-1 with the US SEC to launch a Spot Chainlink ETF, intending to track the price of LINK. This filing details standard creation and redemption mechanisms, allowing for both in-kind and cash transactions. The “Trust-Directed Trade” system managed by a prime execution agent is responsible for these processes. It’s important to note that this all awaits SEC approval.