Bitcoin, Ethereum combination fund to lead the ‘wave’ of crypto ETFs in 2025: analysts
By 2025, an exchange-traded fund (ETF) tracking bitcoin and ether is expected to be the first in a “wave” of new crypto funds, according to Bloomberg ETF analyst Eric Balchunas.
“We expect a wave of cryptocurrency ETFs next year, although not all at once,” Balchunas posted on X on December 17, sharing analysis from fellow ETF analyst James Seifert.
The duo expects the first new Bitcoin (BTC) and Ether (ETH) combination fund to be closely followed by ETFs tracking Litecoin (LTC) or Hedera (HBAR).
Seifert said the Securities and Exchange Commission rejected several Solana ( SOL ) ETFs on Dec. 7, and that the SOL and XRP ( XRP ) ETFs should wait until Donald Trump's election as SEC chairman “before serious consideration.”
Source: Eric Balchunas
Balchunas said regulators view Litecoin and Hedera more favorably, and that's why the two analysts believe they'll get ETFs ahead of larger market cap assets like XRP and Solana.
As Litecoin is a fork of Bitcoin, it is more likely to be greenlit and may be viewed as a “commodity,” he said.
Hedera, meanwhile, is not designated as a security by the SEC, something that makes it easier for an exchange-traded product to gain approval.
Related: Bitcoin ETFs Beat Gold Funds in AUM: K33 Research
XRP and SOL are guaranteed by the SEC, Ripple has been involved in a legal battle with the agency for years over the legal status of XRP.
While the analysts see HABR and LTC as having a high chance of approval, it is still “unclear” whether the funds will see much investor interest.
Many crypto analysts expect the SEC under the Trump administration to be more receptive to crypto assets.
Trump has said he intends to nominate pro-crypto trader and former SEC commissioner Paul Atkins as the SEC's next chairman. Lawmakers believe it could lead to deregulation and pro-crypto policy.
Current SEC Chairman Gary Gensler announced that Trump would leave the agency on January 20, the day Trump was inaugurated, while another Democrat, Jamie Lizard, said he would leave the agency a few days earlier on January 17.
On December 17, SEC Commissioner Caroline Crenshaw had her nomination withdrawn, opening up the possibility of four pro-Trump and crypto-friendly commissioners.
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