A “new wave” of crypto exchange-traded funds (ETFs) is expected in 2025 as the regulatory landscape improves under the incoming Trump administration, according to Bloomberg Intelligence analysts. Bitcoin-Ethereum (ETH) combination products are expected to lead the charge, with Litecoin (LTC) and Hedera Hashgraph (HBAR) following closely behind. However, legal and regulatory hurdles may delay ETFs tied to Solana (SOL) and XRP, casting uncertainty on their future prospects. Bloomberg ETF analyst Eric Balchunas, along with colleague James Seyffart, emphasized Litecoin’s favorable position due to its close ties to Bitcoin and its commodity classification by the US Securities and Exchange Commission (SEC).
Litecoin and HBAR are considered to have a higher likelihood of approval compared to Solana and XRP, although investor demand remains unclear. Canary Capital, a new issuer, is currently the only filer for ETFs tied to Litecoin and HBAR, raising questions about the level of market interest in these products. Potential delays may be faced by Solana and XRP ETFs, as the SEC’s rejection of recent Solana filings and legal ambiguity surrounding both tokens complicate their approval prospects. Ongoing lawsuits focused on their classification as securities are also seen as a key hurdle that needs to be addressed before ETF applications can gain traction.
The broader outlook for crypto ETFs will depend on the direction of regulatory leadership under the next US administration. Greater clarity around token classifications could reshape the ETF landscape, potentially allowing altcoins like Solana and XRP to join Bitcoin and Ethereum products. While 2025 may bring about a turning point for crypto ETFs beyond Bitcoin and Ethereum, legal uncertainty and tepid investor demand for alternative crypto products may continue to limit momentum in the near term.
In conclusion, the road ahead for crypto ETFs in 2025 looks promising but challenging, with Bitcoin-Ethereum combination products expected to lead the way. Litecoin and HBAR are positioned favorably compared to Solana and XRP, although regulatory hurdles and investor demand remain uncertainties. The direction of regulatory leadership under the next US administration will play a crucial role in shaping the ETF landscape, with greater clarity on token classifications potentially opening doors for altcoins to enter the market. Overall, while 2025 may bring opportunities for expansion in the crypto ETF space, legal uncertainties and market dynamics will continue to influence the pace of growth and adoption in this evolving industry.
