Crypto ETFs on the Horizon: A Wave of New Funds Expected in 2025

Get ready for a crypto ETF explosion in 2025. According to Eric Balchunas, a senior Bloomberg ETF analyst, a slew of new United States crypto funds is on the way, with the first one expected to track both Bitcoin and Ether. This is just the beginning, as Balchunas predicts a “wave” of cryptocurrency ETFs will hit the market next year, albeit not all at once. He shared his analysis on X, citing fellow ETF analyst James Seyffart’s insights, and it’s clear that the crypto landscape is about to get a whole lot more interesting.

Which Coins Will Make the Cut?

So, which coins can we expect to see in these new ETFs? Balchunas and Seyffart think that after the Bitcoin and Ether combo fund, we’ll see ETFs tracking Litecoin (LTC) or Hedera (HBAR). Why these two? Well, it seems that regulators view them more favorably, which could give them a leg up on other coins like XRP and Solana (SOL). In fact, the Securities and Exchange Commission (SEC) has already rejected multiple Solana ETFs, and it’s unlikely that SOL and XRP ETFs will be “seriously considered” until President-elect Donald Trump’s SEC chair pick takes the reins.

Litecoin and Hedera: The Favorites

Litecoin, being a fork of Bitcoin, might be viewed as a “commodity” by regulators, which could make it easier to get the green light for an ETF. Hedera, on the other hand, has managed to avoid being labeled as a security by the SEC, which makes it a more attractive candidate for an exchange-traded product. This is in contrast to XRP and SOL, which have been classified as securities by the SEC, making their path to ETF approval much rockier. Ripple, in particular, has been embroiled in a lengthy legal battle with the agency over the status of XRP.

A New Era for Crypto Regulation?

With Trump’s administration expected to be more crypto-friendly, many are predicting a shift in the regulatory landscape. The president-elect has already announced his intention to nominate pro-crypto businessman and former SEC commissioner Paul Atkins as the next SEC chair, which could lead to deregulation and a more favorable environment for crypto assets. Current SEC Chair Gary Gensler is set to resign on January 20, and with several other commissioners stepping down or having their renomination votes canceled, the stage is set for a potential overhaul of the agency’s crypto policies.

While it’s still unclear whether these new ETFs will garner significant investor demand, one thing is certain: the crypto landscape is on the cusp of a major transformation. As the SEC’s stance on crypto continues to evolve, we can expect to see more innovative products and investment opportunities emerge. Whether you’re a seasoned crypto enthusiast or just starting to dip your toes into the world of digital assets, 2025 is shaping up to be a very interesting year indeed.