Originally published on: December 18, 2024
A senior analyst at Bloomberg, Eric Balchunas, predicts that a groundbreaking exchange-traded fund (ETF) tracking both Bitcoin and Ether will kickstart a wave of new crypto funds arriving in the United States by 2025.
In a recent post, Balchunas hinted at an upcoming surge of cryptocurrency ETFs, with the first of its kind combining Bitcoin (BTC) and Ether (ETH). This innovative fund is expected to pave the way for others tracking popular cryptocurrencies like Litecoin (LTC) and Hedera (HBAR).
However, Balchunas noted that regulatory hurdles may delay the approval of ETFs tied to assets such as Solana (SOL) and XRP. These tokens have been classified as securities by the Securities and Exchange Commission (SEC), leading to complexities in gaining approval for ETF products.
On the flip side, Litecoin and Hedera may have an easier path to ETF approval due to their favorable regulatory outlook. Litecoin’s close association with Bitcoin and Hedera’s non-security status could position them as frontrunners in the race for ETF acceptance.
While speculation about regulatory policies under the upcoming SEC chair, potentially pro-crypto figure Paul Atkins, is ongoing, the future of crypto ETFs remains uncertain. Analysts stress that approval does not guarantee investor demand and market success for these funds.
As the crypto landscape evolves, industry experts anticipate significant growth and regulatory shifts that could make crypto assets more mainstream and integrated into traditional financial markets. Stay informed with our Crypto Biz newsletter for the latest updates on blockchain trends and business developments in the crypto sphere. Don’t miss out on key insights to navigate this dynamic market effectively.
