As a seasoned researcher with over two decades of experience in the financial markets, I have witnessed numerous paradigm shifts and the rise and fall of various asset classes. The prospect of a wave of cryptocurrency ETFs in 2025 is an exciting development that I am eager to observe closely.
According to analysts at Bloomberg, it’s likely that the U.S. Securities and Exchange Commission (SEC) will give their stamp of approval to exchange-traded funds (ETFs) based on cryptocurrencies by the year 2025, signaling a promising outlook for such investment products.
Next year, potential investors in the cryptocurrency market could find themselves with numerous choices for publicly listed crypto-related securities. One such possibility could be an amalgamation of Bitcoin and Ethereum.
A Wave Of Crypto ETFs
As a market analyst, I predict a surge of exchange-traded funds (ETFs) in the cryptocurrency realm, with a focus on XRP and Solana, due to my expectation that the Securities and Exchange Commission (SEC) will grant approval for multiple such investment instruments next year.
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once,” Eric Balchunas, one of the Bloomberg analysts, said in a post.
A sense of hopefulness persists within the cryptocurrency sector, given the indication that Gary Gensler, the incumbent SEC Chair, may vacate his position under the incoming administration of President-elect Donald Trump.
next year, it’s anticipated that a surge of cryptocurrency Exchange-Traded Funds (ETFs) will appear. However, they won’t come out en masse simultaneously. Initially, we might see the launch of ETFs focusing on Bitcoin and Ethereum as a pairing. Following this, it seems plausible that Litecoin, due to its similarity to Bitcoin as a commodity, will be next. Afterward, Harmony (HBAR) is likely because it’s not classified as a security. Lastly, we may see ETFs for XRP and Solana, which are currently considered securities in ongoing proceedings.
— Eric Balchunas (@EricBalchunas) December 17, 2024
It’s been suggested that Gensler is viewed as a government official who is critical of cryptocurrencies, and he has put in place strict rules in the crypto market that potentially limit the expansion of digital assets within the United States.
There’s a lot of enthusiasm among cryptocurrency traders, as they hope President Trump will select a new Securities and Exchange Commission (SEC) leader who may be more favorable towards the creation of Bitcoin and other digital asset exchange-traded funds (ETFs).
Bitcoin-Ethereum ETF To Get The Go
According to Balchunas and analyst James Seyffart at Bloomberg, it’s expected that a combined Bitcoin and Ethereum exchange-traded fund will be the pioneer in cryptocurrency-backed securities approved by the Securities and Exchange Commission (SEC).
“Dual bitcoin and ethereum ETFs from Hashdex, Franklin [Templeton] and Bitwise will likely be the next spot crypto ETFs approved,” Seyffart said in a post.
Representatives from Bitwise, Hashdex, and Franklin Templeton are eagerly awaiting the debut of a new exchange-traded fund that merges the two leading cryptocurrencies by market cap. Consequently, they’ve publicly declared their intentions to offer these investment products.
This year, the SEC granted approval for a Bitcoin ETF in January and an Ethereum ETF in July. Consequently, this newly established exchange-traded fund marks the first occasion where these two leading cryptocurrencies will be combined as a single tradable investment product.
Expect Delay For XRP-Solana
Crypto experts predict that a joint ETF for XRP and Solana could be delayed due to anticipation that the current Securities and Exchange Commission (SEC) may not authorize traded securities, given that these digital assets are embroiled in legal disputes where they have been labeled as securities.
This month, the current leadership at the Securities and Exchange Commission (SEC) turned down two out of five applications for exchange-traded funds submitted by businesswoman Eleanor Terrett, who works as a journalist in the financial sector.
Simultaneously, Balchunas and Seyffart remain hopeful that the combined XRP and Solana securities will receive approval from the incoming SEC administration.
“Both Solana and XRP ETFs will have to wait until the new SEC administration takes control before being seriously considered,” Seyfart noted.
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2024-12-19 00:42