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December 17, 2024

Wave of New Crypto ETFs Coming in 2025, According to Bloomberg Analyst Eric Balchunas

By Alex Richardson

Bloomberg exchange-traded fund (ETF) analyst Eric Balchunas says that 2025 will likely see many new digital asset ETFs be approved.

In a post on the social media platform X, Balchunas says that he’s anticipating a “wave” of new crypto ETFs next year, potentially in a particular order.

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Says Balchunas

“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 lawsuits).”

Balchunas shares a note from fellow Bloomberg ETF analyst James Seyffart speculating that Litecoin (LTC) and Hedera (HBAR) ETFs may have better chance of approval than Solana (SOL) and XRP due to not being targeted by the U.S. Securities and Exchange Commission (SEC) as alleged unregistered securities.

Before LTC and HBAR products, Seyffart says the next ETFs will likely be Bitcoin (BTC)  and Ethereum (ETH) combos from Hashfex, Franklin Templeton and Bitwise.

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“Solana filings were recently rejected, and both Solana and XRP ETFs will have to wait until the new SEC administration takes control before being seriously considered. Even then, complex legal issues around these tokens and others relating to their status as securities may need to be resolved. Litecoin, on the other hand, was a fork of Bitcoin and may be viewed by the SEC as a commodity. The SEC isn’t calling Litecoin or HBAR a security anywhere. 

New issuer Canary is the only filer for a Litecoin or HBAR ETF. Though we think both have higher odds than others of approval, it’s unclear whether there’s investor demand.”

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