Originally published on: December 18, 2024
In a forecast that is sure to excite crypto enthusiasts, analysts predict that a wave of new cryptocurrency ETFs will hit the United States market in 2025, with an exchange-traded fund (ETF) that tracks both Bitcoin and Ethereum leading the charge. Bloomberg’s senior ETF analyst, Eric Balchunas, shared this exciting news, indicating that this new trend is set to reshape the investment landscape.
According to Balchunas and fellow ETF analyst James Seyffart, the upcoming surge in ETFs will not happen all at once but will gradually unfold over the coming year. The first wave is expected to include funds tracking popular cryptocurrencies like Litecoin and Hedera, following the debut of the Bitcoin and Ethereum combo fund.
While cryptocurrencies like Solana and XRP face regulatory hurdles, Litecoin and Hedera are viewed more favorably by regulators, making them prime candidates for ETF approval. Litecoin, considered a ‘commodity’ due to being a fork of Bitcoin, holds a strong chance of receiving the green light. Similarly, Hedera’s lack of a security label from the SEC paves the way for an easier approval process for an exchange-traded product.
Despite the optimism surrounding these ETFs, it remains to be seen whether investors will flock to these new offerings. The analysts caution that while Litecoin and Hedera have a higher likelihood of approval, investor demand is an unknown variable.
With the anticipated shift in the SEC’s approach to crypto assets under the upcoming administration, led by a pro-crypto SEC chair nominee Paul Atkins, the future looks bright for the crypto market. Experts predict a more favorable regulatory environment and potential deregulation, setting the stage for further adoption and growth in the industry.
As the landscape of cryptocurrency investment evolves, 2025 is poised to be a transformative year for ETFs, opening up new opportunities for investors to diversify their portfolios in the ever-expanding digital asset space. Stay tuned for an exciting journey ahead in the world of crypto investments.
