Emily Walker
Bloomberg analysts are optimistic that a variety of cryptocurrency exchange-traded funds (ETFs) could receive approval from the US Securities and Exchange Commission (SEC) by 2025.
Next year might offer numerous opportunities for cryptocurrency investors, potentially featuring a joint ETF for Bitcoin and Ethereum.
Upcoming Crypto ETFs
Two analysts from Bloomberg predict a surge in SEC-approved ETFs, particularly for XRP and Solana, within the cryptocurrency market.
“Expect a wave of cryptocurrency ETFs next year, although not all at once,” stated Eric Balchunas, one of the Bloomberg analysts.
The crypto market remains hopeful, especially as the upcoming presidency under Donald Trump suggests a change in SEC leadership, with current chair Gary Gensler likely stepping down.
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
Gensler has been viewed as unfavorable towards the cryptocurrency sector, implementing strict regulations that hinder growth in the US.
Many traders hope that Trump’s new SEC appointments will exhibit a more favorable stance towards cryptocurrency ETFs.
Anticipated Bitcoin-Ethereum ETF Approval
Balchunas and fellow analyst James Seyffart suggest that a combined Bitcoin and Ethereum ETF is likely to be the first to gain SEC approval.
“Joint Bitcoin and Ethereum ETFs from Hashdex, Franklin Templeton, and Bitwise are probably the next crypto ETFs to be approved,” said Seyffart.
Asset managers from Bitwise, Hashdex, and Franklin Templeton are eager to launch an ETF that integrates the two largest cryptocurrencies. These firms have already shown interest in bringing this investment product to market.
This year saw the SEC approving separate ETFs for Bitcoin and Ethereum in January and July, respectively. However, this anticipated ETF marks the first instance of these major cryptocurrencies being combined into a single traded product.
Delays Anticipated for XRP-Solana
Some analysts believe that an XRP and Solana ETF may face further delays, expecting that the current SEC leadership will not approve these securities due to ongoing legal challenges regarding their status as securities.
Business journalist Eleanor Terrett noted that the SEC recently denied two applications for Solana ETFs under the current administration.
Despite this, Balchunas and Seyffart remain hopeful that the upcoming SEC administration will greenlight the XRP and Solana ETFs.
“Both Solana and XRP ETFs will likely need to wait for the new SEC leadership to be taken seriously,” Seyffart commented.
Image from Reuters, chart from TradingView