Bitwise CIO predicts that ETFs for two emerging altcoins are on track for approval and highlights three altcoins to keep an eye on.

Bitwise CIO Matt Hougan expressed confidence that exchange-traded funds (ETFs) tied to the altcoins Sui (SUI) and Aptos (APT) stand a strong chance of gaining regulatory approval in the U.S. His comments come amid a turbulent period for Bitcoin (BTC) and altcoins, which have seen sharp drops driven by macroeconomic uncertainty and concerns over President Trump’s tariff policies.

In an interview with Decrypt, Hougan shared an optimistic outlook for decentralized finance (DeFi) despite altcoins’ recent struggles. He argued that DeFi remains “significantly undervalued” and poised for a breakout once new regulations take effect. Highlighting Uniswap (UNI), Ondo, and Aave as DeFi-based altcoins with substantial growth potential, he remarked, “The market hasn’t yet grasped that these tokens could transform the token economy and turn into cash-generating powerhouses under a new regulatory framework.”

Against a backdrop of investor hopes for a crypto rebound fueled by positive Federal Reserve news, Hougan also spotlighted the appeal of layer-1 blockchains like Sui and Aptos for institutional investors. He predicted that ETFs based on these two altcoins are well-positioned for approval, stating, “SUI and APT clearly meet the criteria to draw institutional interest and have a strong shot at getting the green light. If a SUI ETF gets approved, I’ll be putting my own money into SUI.”

Bitwise recently submitted an application for an Aptos ETF this month, though it has yet to file for a SUI-based ETF. When pressed on future ETF plans, Hougan remained tight-lipped about specific altcoins but noted that Bitwise is actively evaluating projects with “real potential, high quality, and ties to compelling initiatives.”