Bloomberg Senior ETF analyst Eric Balchunas predicts a huge wave of crypto ETFs in 2025. The first possible launch will likely involve a combination of Bitcoin and Ethereum ETFs, with Litecoin (LTC) and Hedera (HBAR) possibilities set to follow. A report by Bloomberg analyst James Seyffart said Solana (SOL) and XRP ETFs could encounter regulatory hurdles.
Litecoin and HBAR Likely to Gain ETF Approval
Seyffart emphasized that Litecoin and HBAR stand a higher chance of gaining approval than Solana and XRP. The reasoning lies in their regulatory status. The U.S. Securities and Exchange Commission (SEC) has not classified Litecoin or HBAR as securities. Specifically, Litecoin’s close ties to Bitcoin could favor its treatment as a commodity, mirroring how Bitcoin ETFs have been regulated.
As a fork of Bitcoin, analysts believe that Litecoin can adapt itself to the SEC rules, which makes its approval a little easier. HBAR has also avoided any designation as a security, putting it ahead of other legal trouble tokens. But, as Seyffart also points out, there is uncertainty regarding market demand for such products, with Canary Capital alone being the only filer of Litecoin and HBAR ETFs.
Solana and XRP ETFs face delays due to regulatory uncertainty
While Litecoin and HBAR ETFs look promising, the prospects for Solana and XRP ETFs remain unclear. Major hurdles have been created from the SEC’s rejection of Solana ETF filings and forthcoming XRP legal issues. For serious consideration, analysts say these challenges must be addressed under the next U.S. administration. Both tokens remain in an unclear classification as security, preventing its approval in the short term.
The future of cryptocurrency ETFs will depend on the regulatory environment under the next U.S. administration. Greater clarity on token classifications could open doors for new ETF products beyond Bitcoin and Ethereum. However, analysts caution that tepid investor demand for altcoin-based ETFs could limit growth in the near term.
Bitcoin and Ethereum ETFs from issuers such as Hashdex, Franklin Templeton, and Bitwise are expected to be the first approved spot crypto ETFs. Regulatory decisions and market demand are influencing the sector’s growth and, by extension, helping with growth in interest from investors in cryptocurrency ETFs. Key to their success remains regulatory clarity.
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