TL;DR
Bloomberg analysts predict a significant surge in crypto ETFs in 2025, driven by changes in SEC leadership and growing market demand.
The first wave of new crypto ETFs is expected to be led by Bitcoin and Ethereum, followed by Litecoin and Hedera, which have favorable regulatory positions.
Solana and XRP may face delays in ETF approval due to ongoing legal battles regarding their classification as securities, with the SEC’s stance being crucial for their prospects.
As the crypto market continues to evolve, 2025 is shaping up to be a landmark year for crypto ETFs. Bloomberg analysts Eric Balchunas and James Seyffart predict a significant surge in cryptocurrency ETFs, driven by anticipated changes in the U.S. SEC leadership and growing market demand.
Leading the Wave: Bitcoin and Ethereum
The analysts expect a second wave of new crypto ETFs to be led by a combination fund tracking both Bitcoin (BTC) and Ethereum (ETH). These two cryptocurrencies, being the largest by market capitalization, are seen as the most likely candidates to gain a second wave and attract substantial investor interest.
The introduction of new Bitcoin and Ethereum combo ETFs is expected to pave the way for a broader acceptance of crypto-based investment products.
Expanding the Crypto ETFs Universe: Litecoin and HBAR
Following Bitcoin and Ethereum, the analysts foresee ETFs for Litecoin (LTC) and Hedera (HBAR) gaining approval. Litecoin, a fork of Bitcoin, is considered a commodity, which gives it an advantage in the SEC’s approval process.
Hedera, on the other hand, has not been classified as a security by the SEC, positioning it favorably for ETF approval. These factors make Litecoin and HBAR strong contenders for early ETF launches.
Challenges for Solana and XRP
While the outlook for Bitcoin, Ethereum, Litecoin, and HBAR ETFs is optimistic, the analysts caution that ETFs for Solana (SOL) and XRP may face significant delays.
Both cryptocurrencies are currently involved in legal battles regarding their classification as securities, which complicates their path to regulatory approval. The SEC’s stance on these assets will be crucial in determining their ETF prospects.
Regulatory Shifts and Market Impact
The anticipated shift in SEC leadership following the U.S. presidential election is expected to create a more favorable environment for crypto ETFs. President-elect Donald Trump has nominated pro-crypto businessman and former SEC commissioner Paul Atkins as the next SEC chair.
This change in leadership is likely to result in a more supportive regulatory approach towards crypto assets, potentially accelerating the approval process for various crypto ETFs.
