Bitcoin and Ethereum ETFs Will Probably Be the First US Crypto Funds to Launch in 2025

Bloomberg ETF analyst Eric Balchunas has predicted that Bitcoin and Ethereum exchange-traded funds (ETFs) will be the first of U.S. crypto funds launching in 2025

Bloomberg ETF analyst Eric Balchunas predicts that Bitcoin and Ethereum exchange-traded funds (ETFs) will be the first of several U.S. crypto funds launching in 2025.

On December 17, Balchunas shared an analysis from fellow ETF analyst James Seyffart. “We expect a wave of cryptocurrency ETFs next year, albeit not all at once,” Balchunas wrote.

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… pic.twitter.com/29vMdciZxE

According to Balchunas and Seyffart, ETFs tracking Litecoin (LTC) or Hedera (HBAR) could follow the Bitcoin and Ether fund. Notably, Seyffart mentioned that the U.S. Securities and Exchange Commission (SEC) previously rejected several Solana ETFs. He also suggested that ETFs for Solana (SOL) and XRP will likely be considered only after President-elect Donald Trump’s chair pick heads the agency.

Balchunas highlighted that regulators view LTC and HBAR more favorably, which is why he and Seyffart believe these assets could see ETFs approved before larger market-cap assets like XRP and SOL.

The SEC has classified XRP and SOL as securities, a designation that has led to regulatory challenges for both cryptocurrencies. This classification complicates the approval process for ETFs tied to these assets and could delay their potential launch.

LTC is seen as a stronger candidate for ETF approval due to its status as a Bitcoin fork, which may qualify it as a “commodity.” On the other hand, HBAR has not been categorized as a security by the SEC. This possibly eases the path for an ETF approval compared to other cryptocurrencies facing regulatory hurdles.

While LTC and HBAR have stronger approval prospects, the analysts noted that it remains uncertain whether there will be significant investor demand for these funds.

Many within the crypto community anticipate that the SEC, under the leadership of Paul Atkins, a nominee selected by President-elect Trump, may adopt a more favorable stance toward crypto assets.

Trump stated that Atkins is a strong believer in the potential of dynamic, innovative capital markets that cater to investor needs and drive economic growth to strengthen the U.S. economy.

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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.