According to ShibDaily, Bloomberg ETF analyst Eric Balchunas has forecasted that Bitcoin and Ethereum exchange-traded funds (ETFs) will be the first U.S. crypto funds to launch in 2025, with additional funds to follow. On December 17, Balchunas shared an analysis from fellow ETF analyst James Seyffart, indicating a gradual introduction of cryptocurrency ETFs next year. The initial offerings are expected to be Bitcoin and Ethereum combination ETFs, followed by potential funds for Litecoin (LTC) and Hedera (HBAR).
Balchunas and Seyffart suggest that Litecoin and Hedera ETFs could be approved sooner due to their favorable regulatory status. The U.S. Securities and Exchange Commission (SEC) has previously rejected several Solana ETFs, and Seyffart noted that Solana (SOL) and XRP ETFs might only be considered after the new SEC chair, appointed by President-elect Donald Trump, assumes office. The analysts believe that the SEC views LTC and HBAR more favorably, which could lead to their approval before larger market-cap assets like XRP and SOL. The SEC has classified XRP and SOL as securities, complicating the approval process for ETFs linked to these cryptocurrencies.
Litecoin is seen as a strong candidate for ETF approval due to its classification as a Bitcoin fork, potentially qualifying it as a "commodity." Meanwhile, Hedera has not been categorized as a security by the SEC, possibly easing its path to ETF approval compared to other cryptocurrencies facing regulatory challenges. Despite the stronger approval prospects for LTC and HBAR, the analysts noted uncertainty regarding investor demand for these funds.
Many in the crypto community are hopeful that the SEC, under the leadership of Paul Atkins, a nominee selected by President-elect Trump, may adopt a more favorable stance toward crypto assets. Trump has expressed that Atkins is a strong advocate for dynamic, innovative capital markets that meet investor needs and drive economic growth to bolster the U.S. economy. This article is intended for informational purposes only and should not be considered financial advice. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
