Wave Of Crypto ETFs Expected In 2025: Bloomberg Expert Reveals Top Picks For Early Approval

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As a seasoned crypto investor with a keen eye for regulatory trends and a knack for spotting opportunities, I find myself brimming with optimism as we approach the second term of President Trump. The impending wave of crypto ETF approvals promises to be transformative for digital assets in the United States, and I can’t help but feel like I’m standing on the precipice of a golden age for this burgeoning market.

With President-elect Donald Trump set to begin his second term, it appears that the regulatory environment surrounding cryptocurrencies could undergo substantial changes. There’s an expectation that numerous crypto Exchange Traded Funds (ETFs) will receive approval over the next year, which may signify a potentially momentous shift in the future of digital assets within the United States.

Emerging Entrants In Crypto ETFs

As reported by Bloomberg’s ETF specialist, Eric Balchunas, it is anticipated that Bitcoin and Ethereum ETFs offered by companies like Hasdex, Franklin Templeton, and Bitwise Invest could be the upcoming choices for getting approved.

Additionally, Balchunas pointed out that recent denials on Solana’s application submissions suggest that both Solana and Ripple‘s ETF proposals may not receive thorough review until the new leadership of the United States Securities and Exchange Commission (SEC) takes office. In simpler terms, it seems like these ETF applications might need to wait for the incoming SEC administration before they get a proper chance at being reviewed.

Nevertheless, achieving approval might not follow a simple route. Balchunas underscored that there are intricate legal matters to address, primarily concerning the categorization of these digital assets, specifically whether they fall under the classification of “securities.” These issues must be clarified.

Unlike Bitcoin, Litecoin, considered a spin-off from Bitcoin, might be labeled as a commodity by the SEC, potentially increasing its chances of acceptance. It’s worth noting that Canary Capital is currently the only entity seeking approval for a Litecoin or HBAR Exchange Traded Fund (ETF).

Although Balchunas thinks they are likely to get approved, he warned that it’s uncertain if there will be enough interest from investors for these financial products.

Trump’s Regulatory Shift

The expected increase in approvals for cryptocurrency ETFs seems to align with President Trump’s broader regulatory shift towards digital assets. On December 4th, it was confirmed that Paul Atkins could take over as the new SEC chair, a move which underscores his intent to promote a crypto-friendly atmosphere.

The shift occurs following the resignation of Gary Gensler as the Securities and Exchange Commission chair, a position he held until President Trump’s inauguration on January 20.

During his tenure as an SEC Commissioner from 2002 to 2008, under President George W. Bush, Atkins gained a reputation for championing lighter regulation in financial markets.

As a crypto investor, I’m feeling pretty confident about Atkins after Trump endorsed him as a “seasoned guide for sensible regulations” on Truth Social. The President-elect underscored Atkins’s faith in the stock market and his recognition of the crucial role digital assets play in fueling economic development.

With the incoming administration, focus has shifted towards identifying the leader for the Commodity Futures Trading Commission (CFTC).

Reports hint to Fox Business that the upcoming Trump administration might grant more authority to the Commodity Futures Trading Commission (CFTC) for regulating specific cryptocurrencies. This potential move could significantly influence how digital currencies are regulated within the United States.

In summary, these advancements are generally seen as very beneficial for the overall cryptocurrency sector. The upcoming regulatory adjustments and a more welcoming atmosphere could encourage increased institutional involvement.

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2024-12-18 17:12