Bloomberg ETF analysts predict the potential approval of several crypto-based exchange-traded funds (ETFs) next year, including a dual XRP and Solana ETF.
Balchunas made the projection yesterday, referencing insights from his colleague James Seyffart. According to them, the crypto industry will experience a wave of ETFs for several cryptocurrencies, including those previously approved for the investment vehicle.
They speculated that while the SEC may not approve these ETFs at once, they may likely be introduced in phases.
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
— Eric Balchunas (@EricBalchunas) December 17, 2024
SEC to First Approve Bitcoin and Ethereum Combo
Bloomberg experts expect the SEC first to approve an ETF combining Bitcoin and Ethereum, the two largest cryptocurrencies by market cap.
Asset managers, such as Bitwise, Hashdex, and Franklin Templeton, have already filed to issue the Bitcoin and Ethereum combo ETFs.
For context, the SEC approved separate ETFs tied to Bitcoin and Ethereum earlier this year. While the Bitcoin ETFs launched in January, trading for the Ethereum-based ETFs went live six months later, in July.
Litecoin and Hedera Hashgraph to Follow
After the Bitcoin and Ethereum combo ETF approval, Bloomberg experts project that Litecoin (LTC) will be the next crypto to be approved for a spot ETF. They noted that since Litecoin is a fork of Bitcoin, the SEC might consider it a commodity.
Afterward, an ETF linked to Hedera Hashgraph (HBAR) could be the next in line for the SEC’s approval. The SEC has not labeled HBAR a security, so it may not face stringent regulatory hurdles.
Currently, Canary Capital is the only investment management company requesting the SEC’s approval for HBAR and LTC ETFs.
Dual XRP and Solana ETFs May Delay
Furthermore, the ETF experts forecasted that an ETF based on XRP (XRP) and Solana (SOL) could come later. However, the SEC will not approve the dual ETF under the current administration since these assets are embroiled in intense legal tussles where they were labeled securities.
FOX Business journalist Eleanor Terrett reported that the current SEC leadership had rejected two of the five applications for SOL ETFs this month. However, the regulator has yet to issue a decision regarding the multiple filings for XRP ETFs. Nonetheless, Balchunas and Seyffart believe a new SEC administration will approve a joint XRP and SOL ETF.
Optimism Around Next Administration
In the meantime, crypto enthusiasts have remained optimistic about crypto potential under the upcoming administration.
The U.S. President-Elect Donald Trump, an ardent Bitcoin supporter, has already nominated several pro-crypto advocates to top government agencies that impact the crypto industry. They include Paul Atkins as SEC Chair and Scott Bessent as U.S. Treasury Secretary. He also appointed a new Crypto Czar in the person of David Sacks.
It remains to be seen whether these pro-crypto advocates will continue to support the industry and facilitate the approval of these crypto ETFs once they assume office.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
