Originally published on: December 18, 2024
A groundbreaking exchange-traded fund (ETF) that tracks both Bitcoin and Ether is set to pave the path for a new era of United States crypto funds in 2025, according to senior Bloomberg ETF analyst Eric Balchunas.
In a recent analysis shared on X, Balchunas predicted a surge of cryptocurrency ETFs in the coming year, although not all at once. Joining him in this forecast is fellow ETF analyst James Seyffart, who anticipates the debut of a combined Bitcoin (BTC) and Ether (ETH) fund, followed by ETFs tracking Litecoin (LTC) and Hedera (HBAR).
Seyffart highlighted that the Securities and Exchange Commission recently turned down several Solana (SOL) ETF proposals, suggesting that SOL and XRP ETFs will have to await the appointment of Donald Trump’s SEC chair pick before being seriously considered.
According to Balchunas, Litecoin and Hedera are viewed more favorably by regulators, making them potential candidates for ETF approval ahead of larger market-cap assets like XRP and Solana. Litecoin, being a fork of Bitcoin, may be seen as a “commodity,” while Hedera has not been classified as a security by the SEC, simplifying the approval process for an exchange-traded product.
Despite the higher probability of approval for HABR and LTC ETFs, the analysts expressed uncertainty about the level of investor demand for these funds. With the anticipation of a more crypto-friendly policy under Trump’s administration, which could include the nomination of pro-crypto figures like Paul Atkins as the next SEC chair, the landscape for cryptocurrency ETFs is expected to evolve rapidly.
As the crypto market gains momentum, with voices like Kain Warwick from Infinex predicting exponential growth in the next four years, investors and enthusiasts are keeping a close eye on the unfolding ETF revolution. Stay updated on the latest developments in blockchain and cryptocurrency by subscribing to our Crypto Biz newsletter for a weekly snapshot of key business trends in the industry.