Bloomberg’s analysts are projecting a promising future, anticipating that a slew of cryptocurrency-based exchange-traded funds (ETFs) will receive the green light from the U.S. Securities and Exchange Commission (SEC) by 2025.
Crypto enthusiasts have reason to be excited about the various options that might become available in the realm of publicly traded crypto securities next year, including potential combinations of Bitcoin and Ethereum.
A Surge in Crypto ETFs
According to two Bloomberg analysts, we could soon see a proliferation of exchange-traded funds in the crypto landscape, with a focus on XRP and Solana. They predict a wave of approvals from the SEC for these investment tools in the coming year.
Eric Balchunas, a Bloomberg analyst, shared in a post that "We expect a wave of cryptocurrency ETFs next year, albeit not all at once."
The overall sentiment in the crypto market is optimistic, especially with the incoming U.S. administration under President-elect Donald Trump possibly signaling the exit of current SEC Chair Gary Gensler. Analysts think Gensler’s departure might ease stringent regulations on the crypto market, which many believe have hindered the growth of digital assets in the U.S.
This change has fueled hope among crypto traders that Trump’s appointee for the new SEC head will adopt a more favorable stance on crypto exchange-traded funds.
Bitcoin-Ethereum ETF on the Horizon
Bloomberg analysts Eric Balchunas and James Seyffart are confident that a Bitcoin and Ethereum combined ETF will be among the first crypto-based traded securities to receive SEC approval.
Seyffart commented, "Dual bitcoin and ethereum ETFs from Hashdex, Franklin [Templeton], and Bitwise will likely be the next spot crypto ETFs approved."
Asset management companies Bitwise, Hashdex, and Franklin Templeton are gearing up for this development, expecting to launch a fund that brings together the two largest cryptocurrencies by market capitalization. These firms have already shown interest in rolling out such traded securities.
The SEC had approved a Bitcoin ETF in January and another for Ethereum in July this year. This upcoming Bitcoin-Ethereum ETF would mark the first time these two leading cryptocurrencies are united into a single traded security.
Delays Possible for XRP and Solana ETFs
However, some experts suggest that an ETF featuring XRP and Solana may face delays. The existing SEC administration might not authorize these traded securities due to ongoing legal issues that have led to XRP and Solana being labeled as securities.
Business journalist Eleanor Terrett pointed out that the SEC recently rejected two of the five applications for Solana-related ETFs under its current leadership.
Nevertheless, Balchunas and Seyffart remain hopeful that once a new SEC administration is in place, the combined XRP and Solana ETFs will see more favorable consideration.
Seyffart remarked, "Both Solana and XRP ETFs will have to wait until the new SEC administration takes control before being seriously considered."
Featured image from Reuters, chart from TradingView.
