Analysts from Bloomberg have a positive outlook that a score of cryptocurrency-based exchange-traded funds or ETF would get approval from the US Securities and Exchange Commission (SEC) in 2025.
Crypto investors might have a lot of options next year when it comes to publicly traded crypto securities, one of which would be a combination of Bitcoin and Ethereum.
A Wave Of Crypto ETFs
Two Bloomberg analysts anticipate that exchange-traded funds – XRP and Solana in particular- will soon flood the cryptocurrency space as they foresee that the SEC will approve several of these 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.
An atmosphere of optimism continues to encapsulate the crypto market as the incoming administration of US President-elect Donal Trump indicates that current SEC Chair Gary Gensler will be stepping down from his office.
We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending… pic.twitter.com/29vMdciZxE
— Eric Balchunas (@EricBalchunas) December 17, 2024
Gensler has been perceived as an anti-crypto state official who implemented stringent regulations on the cryptocurrency space that hinder the growth of digital assets in the US.
Many crypto traders are running high on optimism that Trump will appoint a new SEC head that will be more open to crypto exchange-traded funds.
Bitcoin-Ethereum ETF To Get The Go
Balchunas and fellow Bloomberg analyst James Seyffart believe that an exchange-traded fund that put together Bitcoin and Ethereum would be the first crypto-based traded securities to get the green light from the 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.
Asset managers from Bitwise, Hashdex, and Franklin Templeton are anticipating the launch of this exchange-traded fund that combines the two cryptocurrencies with the largest market capitalization. Hence, these asset managers have already expressed their interest in issuing the traded securities.
Earlier this year, the SEC approved an ETF for Bitcoin in January and another for Ethereum in July. Meanwhile, the new exchange-traded fund would be the first time the two largest cryptos would be merged into one traded securities.
Expect Delay For XRP-Solana
Some crypto analysts claimed that an ETF combining XRP and Solana might have to wait a little longer, expecting that the current SEC administration would not permit the traded securities since these digital assets have been involved in legal battles wherein XRP and Solana have been classified as securities.
Eleanor Terrett, a business journalist, remarked that two of the five applications for exchange-traded funds for Solana have been denied by the current SEC leadership this month.
Meanwhile, Balchunas and Seyffart are still optimistic that the joint XRP and Solana traded securities will get the go-signal from the new SEC administration.
“Both Solana and XRP ETFs will have to wait until the new SEC administration takes control before being seriously considered,” Seyfart noted.
Featured image from Reuters, chart from TradingView
