In 2025, the U.S. cryptocurrency ETF market will welcome a new wave, with a combination fund of Bitcoin (BTC) and Ethereum (ETH) expected to be at the forefront. According to the latest analysis report from Bloomberg ETF analysts Eric Balchunas and James Seyffart, ETFs tracking Bitcoin and Ethereum are expected to become highlights of the market in 2025.
Preferred combination for crypto ETFs in 2025: Bitcoin and Ethereum.
Eric Balchunas believes that a combination ETF of Bitcoin and Ethereum will be the first significant product in the wave of crypto ETFs. These funds will not only capture the market performance of the two largest cryptocurrencies by market cap but will also attract significant attention from institutional and traditional investors. As the cryptocurrency market matures, similar fund products will undoubtedly become an important way for investors to engage with digital assets.
Litecoin and Hedera may become the next candidates for ETFs.
While a combination ETF of Bitcoin and Ethereum is undoubtedly the focus of the market in 2025, Balchunas and Seyffart predict that Litecoin (LTC) and Hedera (HBAR) may also become candidates for the next wave of ETFs. The two analysts point out that the approval of Litecoin and Hedera may be relatively easy as they do not face the legal obstacles associated with XRP or Solana (SOL).
Litecoin: As it is a fork of Bitcoin, Litecoin may be viewed as a 'commodity', making it easier to gain approval from the U.S. Securities and Exchange Commission (SEC).
Hedera (HBAR): Hedera has not yet been classified as a security by the SEC, meaning its exchange-traded products could be more easily approved.
Nevertheless, analysts also point out that while these assets are expected to gain ETF approval, it is still unclear whether these funds will receive sufficient market demand and investor favor.
XRP and SOL ETFs face obstacles.
In contrast, Solana (SOL) and XRP currently face greater regulatory challenges. According to the SEC's determination, both XRP and Solana are classified as securities, making their ETF approval process more complicated. Ripple, the company behind XRP, has been in a legal battle with the SEC for years, and throughout this process, XRP's legal status has remained unclear, making the launch timeline for XRP ETFs unpredictable.
Analysts believe that the ETFs for Solana and XRP will only begin to be 'seriously considered' after the new SEC chairman takes office. The arrival of the Trump administration may provide more support for these assets, as it is believed that the Trump administration would tend to implement more cryptocurrency-friendly policies.
The Trump administration may bring policy changes to the cryptocurrency market.
With Trump likely to take office again and nominate pro-cryptocurrency conservative Paul Atkins as the next SEC chairman, the cryptocurrency industry generally expects regulatory policies to become more lenient. Atkins was a commissioner at the SEC and has a relatively positive attitude towards cryptocurrency policy.
Trump's policy direction may prompt the SEC to adopt a more open and supportive stance towards cryptocurrency. This indicates that assets like XRP and Solana may be able to break through current bottlenecks and eventually launch ETFs with improved regulatory policies.
As the cryptocurrency market matures, ETFs will undoubtedly be an important channel for attracting more traditional funds into the digital asset market. A combination ETF of Bitcoin and Ethereum will lead this change, and as the regulatory environment gradually loosens, ETFs for Litecoin, Hedera, and even XRP and Solana may be gradually launched.
Investors need to closely monitor the policy trends of the Trump administration and the decisions of the SEC, as these will determine the future direction of the crypto ETF market. If ETFs for Bitcoin and Ethereum can successfully attract capital inflows, the market potential behind them will undoubtedly provide strong momentum for the growth of the entire crypto market.
Are you looking forward to the launch of the Bitcoin and Ethereum combination ETF? Or do you think Litecoin and Hedera will become the next stars of crypto ETFs? Feel free to share your views in the comments!
