Bloomberg analysts Eric Balciunas and James Seifert predict that crypto exchange-traded funds (ETFs) will see significant growth in 2025 following expected changes in U.S. Securities and Exchange Commission (SEC) leadership. It is predicted that the number will increase. They expect new ETFs tied to major cryptocurrencies such as Bitcoin, Ethereum, Litecoin, HBAR, Solana, and XRP, but some of these products may be delayed due to regulatory hurdles. There is.
Analysts say a Bitcoin and Ethereum combo ETF is likely to lead a new wave of crypto products, with companies like Hashdex, Franklin Templeton and Bitwise expected to launch such funds. I think there are. These products are considered more consistent with the current regulatory framework and have a better chance of gaining approval.
However, there are concerns that Solana and XRP ETFs will face significant delays. Both cryptocurrencies are currently embroiled in an ongoing legal battle over their classification as securities, making immediate approval less certain. Seyffart notes that the Solana and XRP ETF proposals will likely be put on hold until the new SEC administration resolves these issues.
On the other hand, analysts believe that Litecoin and HBAR ETF are likely to gain approval in the short term. Because Litecoin is a fork of Bitcoin, it is considered a commodity, which gives it an advantage in the SEC approval process. HBAR also avoids classification as a security, making it well-positioned for ETF approval. However, only a few issuers have filed for Litecoin and HBAR ETFs, so uncertainty still exists regarding investor demand for these products.
The expected change in SEC leadership after the US presidential election is creating optimism for the approval of crypto ETFs. Current SEC Chairman Gary Gensler is seen as resistant to cryptocurrency-based investment products, contributing to delays in approving such funds. President-elect Trump's nomination of crypto advocate Paul Atkins to replace Gensler is expected to lead to a more favorable regulatory approach to crypto ETFs. This change in leadership could lead to a more supportive environment for altcoin ETFs, including those related to Solana and XRP.
Analysts warned that despite the positive outlook, legal uncertainties and regulatory processes could still cause delays for some products. They also suggest that there may be limited market demand for certain altcoin ETFs, especially tokens like Solana and XRP, which are still grappling with legal issues.
Meanwhile, Bitcoin and Ethereum ETFs are expected to lead the pack, followed closely by Litecoin and HBAR. The approval process for these new products is expected to unfold over the next year, and Solana and XRP ETFs could also be approved once regulatory issues are resolved.
