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Analysts anticipate regulatory shifts could lead to a surge in crypto ETFs next year, including XRP, SOL, LTC, and HBAR.
Photo: Bloomberg Crypto
Key Takeaways
- Bloomberg analysts project a significant increase in crypto ETFs in 2025 following changes in SEC leadership.
- XRP, Solana, LTC, and HBAR ETFs may be considered for approval under the new SEC administration.
Bloomberg analysts expect multiple new crypto ETFs to launch in 2025, following anticipated changes in SEC leadership.
We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending… pic.twitter.com/29vMdciZxE
— Eric Balchunas (@EricBalchunas) December 17, 2024
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once,” Bloomberg Senior ETF analyst Eric Balchunas posted to X on Tuesday.
Balchunas, quoting James Seyffart’s report for Bloomberg, acknowledged that many new ETFs are expected to launch next year, including more Bitcoin and Ethereum combo ETFs, as well as potential offerings for LTC, HBAR, XRP, and Solana.
In the excerpt written by Seyffart, he stated that the dual Bitcoin and Ethereum ETFs from Hashdex, Franklin Templeton, and Bitwise are likely to be the next spot crypto ETFs approved.
He added that XRP and Solana ETFs would have to wait for the next SEC administration to be seriously considered.
Seyffart further mentioned that LTC and HBAR are the most likely ETFs to gain approval next, as neither has been classified as a security. He noted that the SEC may view Litecoin as a commodity since it is a fork of Bitcoin.
The outlook for new crypto ETFs has improved since Donald Trump’s election victory and Gary Gensler’s announced departure as SEC chair.
Gensler’s tenure was marked by resistance to digital assets and crypto-based investment products, even as spot Bitcoin ETFs attracted billions in investments.
However, with Gensler’s departure, a shift in regulatory tone seems imminent.
President-elect Trump has nominated Paul Atkins, a former SEC commissioner known for his pro-crypto stance, to succeed Gensler.
Atkins is expected to implement a lighter regulatory approach, potentially easing the path for crypto ETFs.
In his tweet, Eric Balchunas posted an image of a dog in response to someone replying to his post, suggesting that other crypto ETFs linked to additional tokens might launch.
Balchunas replied humorously, hinting that a Dogecoin ETF could appear and even gain approval next year.
In a report by The Block covering the news, the publication noted that Balchunas previously said today’s satire can often become tomorrow’s ETF, suggesting that while Dogecoin may seem far-fetched, someone will likely attempt it because there’s little reason not to.
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