Originally published on: December 18, 2024
A surge of cryptocurrency exchange-traded funds (ETFs) is expected to hit the United States market in 2025, starting with a groundbreaking fund tracking both Bitcoin and Ether. According to senior Bloomberg ETF analyst Eric Balchunas, this new wave of ETFs is set to revolutionize the digital asset investment landscape.
In a recent post on X, Balchunas shared insights from fellow ETF analyst James Seyffart, indicating that the arrival of the Bitcoin and Ether combo fund will pave the way for ETFs tracking other prominent cryptocurrencies like Litecoin and Hedera. The analysts pointed out that while regulators have rejected several Solana ETFs, assets like Litecoin and Hedera are viewed more favorably and could receive approval sooner.
Litecoin, considered a derivative of Bitcoin, is likely to be approved as a “commodity,” making it a prime candidate for an ETF. On the other hand, Hedera has not been classified as a security by the SEC, streamlining the approval process for an exchange-traded product.
Despite the optimism surrounding the approval of ETFs for Hedera and Litecoin, the analysts emphasized that demand from investors remains uncertain. However, with the changing landscape of regulatory policies under the upcoming SEC chair, who is rumored to be pro-crypto businessman Paul Atkins, the outlook for crypto assets appears promising.
The anticipated shift towards a more crypto-friendly SEC aligns with recent statements from President-elect Donald Trump, suggesting a potential wave of deregulation in the crypto space. As current SEC Chair Gary Gensler plans to resign on the day of Trump’s inauguration, the possibility of a more crypto-friendly commission increases with the nomination of Atkins and the impending vacancy of several Democratic commissioners.
With the stage set for a new era of crypto ETFs and regulatory changes, the crypto community eagerly awaits the transformative impact these developments will have on the digital asset market in the years to come. Subscribe to our Crypto Biz newsletter for more insights on emerging trends and opportunities in the crypto industry.