Wall Street's enthusiasm for launching ETFs linked to smaller cryptocurrencies is facing scrutiny as altcoin values plummet, erasing billions in market capitalization. The U.S. Securities and Exchange Commission (SEC) is currently reviewing approximately 130 applications for such ETFs. While the ETF structure can enhance disclosure standards and custodial security, the underlying assets remain heavily reliant on speculative sentiment and retail momentum, posing challenges for maintaining liquidity within the fund structure. Many of these applications were submitted during more optimistic market conditions, but the recent downturn has clouded fundraising prospects.