A wave of crypto exchange-traded funds (ETFs) is expected to wash over the market in 2025, according to a recent forecast by Bloomberg Senior ETF Analyst Eric Balchunas. This anticipated influx follows the recent approval of Bitcoin and Ethereum futures ETFs, signaling a potential shift in the regulatory landscape.
A Phased Approach: BTC/ETH First, Then Litecoin and HBAR
Balchunas predicts a phased rollout of crypto ETFs, with Bitcoin and Ethereum combination ETFs likely to be the first to gain approval. He anticipates that Litecoin, being a fork of Bitcoin, may follow closely due to its potential classification as a commodity. Hedera Hashgraph (HBAR), which has not been labeled a security by the SEC, also stands a better chance of approval.
Read more: Solana Futures ETF That Could Transform Crypto Trading in 2024!
XRP and Solana: Navigating the SEC’s Regulatory Maze
However, the path to approval for XRP and Solana ETFs is fraught with uncertainty. Both cryptocurrencies are entangled in legal battles with the SEC, which has labeled them as securities. These legal challenges are expected to significantly delay the approval of ETFs tracking these assets. Balchunas emphasizes that resolving these complex legal issues is crucial before any consideration of XRP and Solana ETFs.
Read more: Solana Futures ETF That Could Transform Crypto Trading in 2024!
The Dogecoin Dilemma: A 12/31 Filing Deadline?
Adding another layer of intrigue, Balchunas speculated that a Dogecoin ETF filing could materialize by December 31st of this year. While this remains speculative, it highlights the growing interest in bringing a wider range of cryptocurrencies into the ETF market.
A New Era for Crypto ETFs?
The approval of Ethereum ETFs as commodity-based funds has provided a potential framework for challenging the security status of other cryptocurrencies. However, the current SEC leadership’s stance on crypto regulation presents a significant hurdle.
Read more: Solana Futures ETF That Could Transform Crypto Trading in 2024!
ETFStore President Nate Geraci believes that significant progress on new crypto ETF applications is unlikely to occur until a change in SEC leadership. This suggests that the timeline for Solana ETFs, in particular, may be pushed back further into 2025.
Conclusion: A Wait-and-See Approach
The crypto ETF landscape is evolving rapidly, with new developments and regulatory challenges constantly emerging. While the prospect of a wave of crypto ETF approvals in 2025 is exciting, it is crucial to acknowledge the significant hurdles that remain.
Investors should approach this space with caution and carefully consider the potential risks and rewards associated with investing in cryptocurrencies.
