18 Dec, 2024
Bloomberg Analysts Expect ‘A Wave of Cryptocurrency ETFs’ Next Year
Quick Take
① Bloomberg analysts Eric Balchunas and James Seyffart are expecting a wave of new cryptocurrency-based ETFs next year after leadership takes over at the SEC.
② Both predict that a host of new ETFs could launch including a bitcoin and ether combo ETF, Litecoin and HBAR funds, and then eventually spot funds for Solana and XRP.
Bloomberg analysts expect 'a wave of cryptocurrency ETFs' next year, including Solana and XRP funds
Bloomberg analysts Eric Balchunas and James Seyffart expect investors will likely have multiple new cryptocurrency-based exchange-traded funds to choose from next year.
"We expect a wave of cryptocurrency ETFs next year, albeit not all at once," Bloomberg's Senior ETF analyst Balchunas posted to X on Tuesday.
Since Donald Trump was elected president in November, and Gary Gensler announced he'd be stepping down as chair of the U.S. Securities and Exchange Commission, optimism has been running high that new crypto ETFs might gain approval once the new administration takes over in January. Gensler was often viewed as resistant to embracing digital assets or crypto-based investment products even as some of Wall Street's biggest players launched spot bitcoin ETFs, which have attracted tens of billions of dollars in investment.
"Dual bitcoin and ethereum ETFs from Hashdex, Franklin [Templeton] and Bitwise will likely be the next spot crypto ETFs approved," Seyffart wrote in a note shared by Balchunas. "Both Solana and XRP ETFs will have to wait until the new SEC administration takes control before being seriously considered."
Although proposals for launching either a Solana or XRP ETF have been filed there is little hope they will gain approval before Trump takes power and a new SEC chair is in place.
Seyffart believes the odds are good that a Litecoin or HBAR ETF could be approved before the other new products, but added he wasn't sure "whether there's investor demand."
"The SEC isn't calling Litecoin or HBAR a security anywhere," he said.
Solana and even Dogecoin ETF filings are on the table in 2025, The Block previously reported. “I believe it’s highly likely that Solana ETFs will be approved by the end of next year at the latest," ETF Store President Nate Geraci said last month.
Two Prime Digital Assets CEO Alexander Blume concurred, saying issuers "wouldn’t waste the time and expense to do this if they didn’t have a good sense that they will succeed."
"Today's satire is tomorrow's ETF," Balchunas previously said. "You could ask yourself, 'is DOGE a bridge too far?' and I would say we'll see. I think someoneA's gonna try it because why not?"