Originally published on: December 18, 2024
The world of cryptocurrency is gearing up for an exciting wave of new exchange-traded funds (ETFs) in 2025, with analysts predicting a groundbreaking Bitcoin-Ethereum combo fund to lead the charge. According to senior Bloomberg ETF analyst Eric Balchunas, next year will see a surge in cryptocurrency ETFs, starting with a dual-tracking fund for Bitcoin and Ether.
In a recent post on X, Balchunas shared insights from fellow analyst James Seyffart, forecasting that the Bitcoin-Ethereum combo fund will pave the way for other ETFs tracking assets like Litecoin and Hedera. While some ETF proposals, such as those for Solana and XRP, faced rejections from the Securities and Exchange Commission in December, Balchunas and Seyffart believe that assets like Litecoin and Hedera may have a smoother path to approval.
Litecoin, being a fork of Bitcoin, is seen more favorably by regulators as a potential commodity, making it a prime candidate for an ETF. Similarly, Hedera’s status as a non-security asset could expedite the approval process for an exchange-traded product. Despite these positive outlooks, the analysts caution that the demand for these ETFs remains uncertain.
With expectations of a more crypto-friendly SEC under the leadership of a pro-crypto chair nominated by President-elect Donald Trump, the future looks bright for cryptocurrency assets. The upcoming changes in SEC leadership signal a shift towards deregulation and a more supportive stance on crypto assets.
As the crypto industry continues to gain momentum, investors are eagerly anticipating the arrival of these innovative ETFs in 2025. Stay tuned for more updates on the evolving landscape of cryptocurrency investments.