Emily Walker
One year ago, the first spot Bitcoin exchange-traded funds (ETFs) gained approval for trading in the United States, marking a historic launch in the US financial markets. This milestone has significantly influenced the cryptocurrency landscape since the introduction of these investment options.
As the ETFs enter their second year, discussions regarding their performance and the overall market for crypto ETFs in 2025 are gaining momentum. Nate Geraci, President of the ETF Store, is a prominent voice in these discussions, sharing insights on the outlook for crypto-related ETFs this year.
Bitcoin ETFs Expected to Outperform Gold ETFs in Asset Value
In a recent post on the social media platform X dated January 11, Geraci offered his forecasts for crypto ETFs in 2025. He believes that Bitcoin ETFs, now a year old, are positioned to continue their progress from the previous year.
His most straightforward prediction suggests that BTC ETFs in the US are likely to eclipse physical gold ETFs in total assets, provided Bitcoin’s value does not plummet. Currently, the net assets of spot Bitcoin ETFs are approximately $107.64 billion, while gold ETFs total around $271 billion.
Geraci also anticipates that the United States Securities and Exchange Commission (SEC) will approve options trading for spot Ether ETFs. Furthermore, he mentioned the potential approval for Ether ETF staking by the SEC in 2025.
During the initial application process for spot Bitcoin ETFs, concerns were raised over the in-kind creation and redemption method. Geraci believes that by 2025, investors will likely be able to exchange actual Bitcoin or Ethereum to create or redeem their ETF shares.
Additionally, he predicts that the Bitwise Bitcoin Standard Corporations ETF, which will focus on companies adopting the “Bitcoin standard,” will launch and exceed $1 billion in assets within the year. He also expects over 50 new crypto-related ETFs to be introduced in 2025.
Moreover, Geraci foresees the approval of spot Solana and XRP ETFs, along with Bitwise and Grayscale Crypto Index ETFs in 2025. Notably, he also predicts that Vanguard will eventually permit clients to trade spot Bitcoin and Ether ETFs.
Current Total Crypto Market Capitalization
Recent data from CoinGecko indicates that the total cryptocurrency market cap is approximately $3.46 trillion, reflecting a slight decline of over 1% in the last day. Bitcoin leads the market with a cap of $1.87 trillion, while Ethereum follows with a market cap of $495 billion.