Cryptocurrency Exchange-Traded Funds to Surge in 2025, Analysts Predict
Analysts Eric Balchunas and James Seyffart from Bloomberg have forecasted a significant increase in cryptocurrency exchange-traded funds (ETFs) in 2025. This prediction comes after the approval of Bitcoin and Ethereum ETFs earlier this year.
Regulatory Changes and Potential New ETFs
With the upcoming leadership changes at the Securities and Exchange Commission (SEC), Balchunas and Seyffart shared their insights on the potential for new cryptocurrency ETFs. SEC Chair Gary Gensler’s impending departure in January is expected to pave the way for more approvals.
We expect a wave of cryptocurrency ETFs next year, albeit not all at once.
This optimism aligns with Gensler’s departure, as he has been viewed as a significant roadblock to the approval of new digital asset investment products.
Predicted Sequence of New ETFs
The analysts forecast that dual Bitcoin and Ethereum ETFs from firms like Hashdex, Franklin Templeton, and Bitwise are likely to lead the charge. They predict that Litecoin and Hedera ETFs might follow, citing their classification as commodities or assets not deemed securities by regulators.
Some key points about the predicted sequence of new ETFs include:
- Bitcoin and Ethereum combo ETFs are expected to be the first to launch.
- Litecoin ETFs may follow due to its classification as a commodity.
- Hedera ETFs are also expected to launch, as they are not labeled as securities.
Delays Expected for Solana and XRP ETFs
However, Solana and XRP ETFs face legal delays due to ongoing battles over their classification as securities. Their approval is unlikely until the new SEC administration takes control.
Investor Demand for Niche Funds
Despite the potential for Litecoin or Hedera ETFs, Seyffart questioned whether these niche funds would attract significant investor demand.
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