Bloomberg analysts Eric Balchunas and James Seyffart predict a significant surge in cryptocurrency exchange-traded funds (ETFs) in 2025.
Bloomberg analysts Eric Balchunas and James Seyffart predict a significant surge in cryptocurrency exchange-traded funds (ETFs) in 2025, following anticipated changes to the U.S. Securities and Exchange Commission (SEC) leadership. They expect new ETFs tied to major cryptocurrencies like Bitcoin, Ethereum, Litecoin, HBAR, Solana and XRP, though regulatory hurdles may delay some of these products.
The analysts believe that Bitcoin and Ethereum combo ETFs will likely lead the wave of new crypto products, with firms like Hashdex, Franklin Templeton and Bitwise expected to launch such funds. These products are considered more aligned with current regulatory frameworks, making them more likely to gain approval.
However, there are concerns that Solana and XRP ETFs will face significant delays. Both cryptocurrencies are involved in ongoing legal battles regarding their classification as securities, making imminent approval less certain. Seyffart notes that 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 ETFs are more likely to gain approval in the near term. Litecoin is considered a commodity because it is a fork of Bitcoin, which gives it an advantage in the SEC's approval process. HBAR has also avoided being classified as a security, which positions it favorably for ETF approval. However, there is still uncertainty around investor demand for these products, as only a few issuers have filed for Litecoin and HBAR ETFs.
The anticipated shift in SEC leadership following the U.S. presidential election has generated optimism for the approval of crypto ETFs. Gary Gensler, the current SEC chair, has been viewed as resistant to crypto-based investment products, contributing to delays in approving such funds. With President-elect Trump nominating Paul Atkins, a pro-crypto advocate, to replace Gensler, there is hope that the regulatory approach toward crypto ETFs will become more favorable. This change in leadership could lead to a more supportive environment for altcoin ETFs, including those tied to Solana and XRP.
Despite the positive outlook, analysts caution that legal uncertainties and the regulatory process may still cause delays for some products. They also suggest that there may be limited market demand for certain altcoin ETFs, especially for tokens like Solana and XRP, which are still grappling with legal challenges.
In the meantime, Bitcoin and Ethereum ETFs are predicted to lead the charge, with Litecoin and HBAR following closely behind. The approval process for these new products is expected to unfold over the next year, with Solana and XRP ETFs possibly seeing approval later on, once regulatory issues are resolved.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
