A flood of cryptocurrency exchange-traded funds (ETFs) could hit the market in 2025, according to experts. This potential surge is linked to a major shift in US cryptocurrency regulation under a new administration.
The Next Big Crypto ETFs?
Bloomberg ETF expert Eric Balchunas predicts that ETFs focused on Bitcoin and Ethereum will likely be the first to get approval. Companies like Hasdex, Franklin Templeton, and Bitwise Invest are front-runners in this race. However, Solana and XRP ETFs might have to wait a bit, as recent applications were rejected. The new SEC leadership will need to review these applications before any serious consideration.
Legal Hurdles and Potential Winners
Balchunas points out some tricky legal questions surrounding how cryptocurrencies are classified. The status of these digital assets as “securities” is a key issue. Litecoin, however, might have an easier path to approval because it’s seen as more of a commodity than a security. A company called Canary Capital is the only one currently trying to get a Litecoin or HBAR ETF approved. While Balchunas thinks these have a good shot, it’s unclear if there will be enough investor interest.
Trump’s Influence on Crypto Regulation
This expected wave of ETF approvals is tied to the incoming administration’s approach to crypto. President Trump’s nomination of Paul Atkins as the new SEC chair signals a more crypto-friendly environment. Atkins, known for favoring less regulation, replaces Gary Gensler. Trump sees Atkins as a leader who understands sensible regulations and the potential of digital assets to boost the economy.
The Future of Crypto Regulation
The Commodity Futures Trading Commission (CFTC) is also in the spotlight. Reports suggest the new administration might give the CFTC more power to regulate certain cryptocurrencies. Overall, these changes are seen as very positive for the crypto industry, potentially leading to greater institutional investment.
