Summary:
Bloomberg ETF analysts predict a wave of cryptocurrency ETFs in 2025.
XRP, Litecoin, and HBAR are potential new ETF instruments.
Bitcoin ETFs have accumulated over $129 billion since launch.
Ethereum ETFs attracted $15 billion and are seeing consistent inflows.
Legal battles may delay XRP and Solana ETF approvals.
Anticipating a Crypto ETF Surge
According to Bloomberg ETF analysts, a deluge of new cryptocurrency ETFs is expected in 2025. XRP, Litecoin, and HBAR are among the cryptocurrencies that could see new ETF instruments.
SEC Administration's Impact
All eyes are on the new SEC administration that will take office next year, as it will significantly impact the fate of these cryptocurrencies.
Predictions from Experts
Eric Balchunas and James Seyffart, senior ETF analysts at Bloomberg, predict, “We expect a wave of cryptocurrency ETFs next year, albeit not all at once.” This optimism follows record-breaking Bitcoin ETF fund flows.
Bitcoin and Ethereum ETFs Leading the Charge
Bitcoin ETFs have amassed over $129 billion in assets under management since their launch, while Ethereum ETFs have attracted $15 billion and are experiencing 16 consecutive days of inflows. Balchunas and Seyffart forecast a dual Bitcoin and Ethereum ETF due to filings from Hashdex, Franklin Templeton, and Bitwise.
Future Prospects for Litecoin and Hedera
They express optimism about Litecoin, considering it a fork of Bitcoin and potentially viewed as a commodity by the SEC, alongside Hedera.
Approval Delays for XRP and Solana
However, some cryptocurrencies like XRP and Solana’s SOL face longer approval times and will need to wait for the new SEC administration for serious consideration.
New SEC Leadership
President-elect Donald Trump has nominated Paul Atkins, a crypto ally, as the new SEC chairman, a choice that has received support even from crypto-critics.
Legal Battles and Classification Challenges
XRP has been embroiled in a legal battle with the SEC since August 2020, accused of engaging in an unregistered securities offering. Ripple won a significant court case this year, resulting in a $125 million fine. Conversely, Solana was classified as a security during a large-scale crypto crackdown in late 2023, with the Solana Foundation seeking legal clarity.
Bitcoin ETFs Surpassing Gold
Bitcoin ETFs are breaking records in 2024, having launched successfully on January 11 and now surpassing gold in total investments. Investors have deposited over $129 billion into Bitcoin ETF providers like BlackRock and Fidelity, compared to gold's $128 billion. Balchunas noted that while Bitcoin’s figures include spot, levered, and futures, gold is ahead by $5 billion when excluding the latter two.
Pedro Solimano is a markets correspondent based in Buenos Aires.
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