As of December 17, 2024, Bloomberg ETF analysts expect a big wave of new cryptocurrency ETFs to hit the market in 2025. XRP, Litecoin, and HBAR are among the potential new options. The fate of these cryptocurrencies really depends on the new SEC administration.
According to senior ETF analysts Eric Balchunas and James Seyffart, Wall Street is gearing up for a surge in cryptocurrency exchange-traded funds next year. However, they note that not all will come out at once. “We expect a wave of cryptocurrency ETFs next year, but not all at once,” Balchunas mentioned on X. This prediction comes after Bitcoin ETFs have seen record inflows.
Since their launch, Bitcoin ETFs have gathered over $129 billion in assets under management. Ethereum ETFs have attracted $15 billion and are currently enjoying 16 consecutive days of inflows. Balchunas and Seyffart are optimistic about a dual Bitcoin and Ethereum ETF, thanks to filings from companies like Hashdex, Franklin Templeton, and Bitwise. They also see potential in Litecoin, as it’s a fork of Bitcoin and might be classified as a commodity by the SEC, along with Hedera.
However, some cryptocurrencies like Ripple’s XRP and Solana’s SOL may face longer approval times. They’ll have to wait for the new SEC administration to take charge before being seriously considered, Seyffart explained.
President-elect Donald Trump has nominated Paul Atkins, a crypto ally, to lead the SEC. This nomination has sparked mixed reactions, even among crypto critics.
XRP has been in a legal battle with the SEC since August 2020. The SEC claimed that Ripple engaged in an unregistered securities offering. This year, Ripple won the case but faced a fine of $125 million.
On the other hand, Solana was classified as a security by US authorities during a major crackdown on cryptocurrencies in late 2023. The Solana Foundation disagreed with this classification and expressed a desire to work with regulators for “legal clarity.”
In a remarkable turn, Bitcoin ETFs have surpassed gold, breaking multiple records in 2024. Their launch on January 11 was one of the most successful in ETF history, and now they have overtaken gold in terms of assets.
Investors have poured over $129 billion, or 1.2% of all US ETF funds, into Bitcoin providers like BlackRock and Fidelity. Meanwhile, gold holds around $128 billion. Balchunas pointed out that the Bitcoin figures include spot, leveraged, and futures ETFs. If we exclude the latter two, gold still leads by $5 billion.
“Either way, it’s incredible that we’re even discussing them being this close after just 11 months,” he stated.
Pedro Solimano is a markets correspondent based in Buenos Aires. If you have any tips, feel free to reach out to him at [email protected].