Bloomberg analysts Eric Balchunas and James Seyffart have predicted a surge in cryptocurrency exchange-traded funds in 2025.
Following the approval of Bitcoin (BTC) and Ethereum (ETH) ETFs this year, speculation has increased regarding which crypto ETFs might be launched next. With upcoming leadership changes at the SEC, Balchunas and Seyffart shared their insights on X and discussed their outlook for the cryptocurrency market.
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once,” Balchunas shared on X. His optimism aligns with SEC Chair Gary Gensler’s impending departure, anticipated in January, following Donald Trump’s election victory.
Gensler, often criticized for his cautious stance on crypto, has been viewed as a significant roadblock to the approval of new digital asset investment products.
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
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HBAR and LTC ETFs?
The analysts forecast that dual Bitcoin and Ethereum ETFs from firms like Hashdex, Franklin Templeton, and Bitwise are likely to lead the charge. Seyffart added that Litecoin (LTC) and Hedera (HBAR) ETFs might follow, citing their classification as commodities or assets not deemed securities by regulators.
Balchunas stated that the most likely sequence of events is “btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security).”
Seyffart noted that Solana (SOL) and XRP (XRP) ETFs face legal delays. These assets remain embroiled in legal battles over their classification as securities, making their approval unlikely until the new SEC administration takes control.
Despite the potential for Litecoin or HBAR ETFs, Seyffart also questioned whether these niche funds would attract significant investor demand.
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