A Bloomberg ETF analyst has outlined a predicted timeline for the approval of cryptocurrency ETFs featuring Ripple (XRP), Litecoin (LTC), and Solana (SOL). After a strong year in 2024 with Bitcoin and Ethereum ETFs hitting the market, 2025 is anticipated to bring an even bigger wave of crypto investment opportunities.
Eric Balchunas, Bloomberg’s Senior ETF Analyst, shared his insights in his latest newsletter, forecasting a progressive rollout of new altcoin ETFs in 2025.
Altcoin ETFs on the Horizon
In his update, Balchunas noted, “We can expect ‘a wave’ of new cryptocurrency ETFs in 2025. First will likely be Bitcoin and Ethereum combo ETFs, followed by Litecoin (as it’s a Bitcoin fork classified as a commodity), then HBAR (as it avoids the security label), and eventually XRP and Solana (pending the resolution of their securities lawsuits).”
Favorable Conditions for 2025 Approvals
The potential restructuring of the SEC in 2025, coupled with a more crypto-friendly administration under Donald Trump, is expected to create a more lenient regulatory environment. Balchunas believes that these factors could pave the way for altcoin ETFs like Litecoin and Hedera Hashgraph (HBAR) to debut before XRP and Solana, which are entangled in legal battles over their classification as securities.
Litecoin’s status as a Bitcoin fork gives it an edge, likely being seen by regulators as a commodity rather than a security. Similarly, HBAR has not faced the same regulatory scrutiny, increasing its likelihood of approval.
New Players and Potential Surprises
Canary, a relatively new issuer, is currently the sole filer for Litecoin and HBAR ETFs. However, investor demand for these funds remains uncertain. Balchunas also hinted at the possibility of a Dogecoin (DOGE) ETF filing, speculating that “12/31 feels like a good over/under date for a DOGE filing.”
Looking Ahead
As 2025 approaches, the crypto industry eagerly anticipates the SEC’s next moves. The evolving regulatory landscape, coupled with increasing investor interest, may accelerate the launch of a broader range of crypto ETFs. While the exact timeline remains uncertain, Balchunas’ predictions provide a roadmap for what could be a transformative year for cryptocurrency ETFs.
About The Author
