Bloomberg analysts expects ‘wave of crypto ETFs’ next year but some hurdles remain

A “new wave” of crypto exchange-traded funds (ETFs) is expected successful 2025 arsenic the regulatory scenery improves nether the incoming Trump administration, according to Bloomberg Intelligence analysts.

Bitcoin-Ethereum (ETH) operation products volition apt pb the charge, followed by Litecoin (LTC) and Hedera Hashgraph (HBAR). However, ineligible and regulatory hurdles are expected to hold ETFs tied to Solana (SOL) and XRP, leaving their aboriginal uncertain.

Bloomberg ETF expert Eric Balchunas, citing probe from workfellow James Seyffart, emphasized Litecoin’s favorable presumption owed to its adjacent ties to Bitcoin (BTC).

As a fork of Bitcoin, Litecoin could payment from its commodity classification, which aligns with however the US Securities and Exchange Commission (SEC) treats Bitcoin. Meanwhile, HBAR has avoided being labeled a information truthful far, positioning it up of tokens facing ongoing regulatory scrutiny.

Seyffart wrote:

“Litecoin and HBAR some person higher likelihood of support compared to Solana and XRP. However, it’s unclear whether there’s capitalist demand.”

Canary Capital, a caller issuer, is presently the lone filer for ETFs tied to Litecoin and HBAR, raising questions astir the level of marketplace involvement successful these products.

Potential delays

The analysts besides highlighted that Solana and XRP ETFs could perchance look much important delays.

The SEC’s rejection of caller Solana filings and the ineligible ambiguity surrounding some tokens person analyzable their support prospects. Additionally, ongoing lawsuits focused connected their classification arsenic securities stay a cardinal hurdle, and analysts suggest these issues volition request to beryllium resolved earlier ETF applications summation immoderate traction.

The broader outlook for crypto ETFs hinges connected the absorption of regulatory enactment nether the adjacent US administration. Greater clarity astir token classifications could reshape the ETF scenery and let altcoins similar Solana and XRP to articulation Bitcoin and Ethereum products.

While 2025 could people a turning constituent for crypto ETFs beyond Bitcoin and Ethereum, the analysts cautioned that ineligible uncertainty and tepid capitalist request for alternate crypto products whitethorn proceed to bounds momentum successful the adjacent term.

The station Bloomberg analysts expects ‘wave of crypto ETFs’ adjacent twelvemonth but immoderate hurdles remain appeared archetypal connected CryptoSlate.