2024 was a great year for the ETF market, as Crypto King Bitcoin got approval for its Spot ETF after much struggle and delay. With bullish sentiments riding high in 2025, experts believe this will be a great year for the crypto industry with the community expecting to witness more ETFs to be approved.
Rewinding the clock to early January 2024, the world witnessed the debut of U.S. spot bitcoin exchange-traded funds, probably one of the biggest events in the sector. In the very first year, the BTC ETF pulled in $30 billion in revenue, as a testament to the growing popularity of ETFs.
Recently, Nate Geraci the president of The ETF Institute, predicted that the crypto community may witness 50 new crypto ETFs in 2025. He also anticipates that Bitcoin spot ETFs may surpass physical gold ETFs in asset size due to growing demand of cryptocurrencies in mainstream investments.
Geraci anticipates Solana and XRP ETFs but Regulatory hurdles may create delay. Besides this Bloomberg analysts Eric Balchunas and James Seyffart believe Litecoin and Hedera have a better chance of getting a ETF approval.
Moreover, banking giant JPMorgan predicted that Solana and XRP ETFs may attract billions in new investment if approved. As community is expecting a crypto-friendly regulatory regime in the US after President-elect Donald Trump’s inauguration on Jan. 20 the demand for these ETFs are increased.
Among all the major cryptocurrencies Solana, XRP, and Litecoin are the MOST anticipated ETFs in 2025.
As the crypto space entered a new year of innovations, experts are predicting that 2025 will be the year of ETFs. Among the major cryptocurrencies, Solana, XRP, and Litecoin are the strongest contenders of getting a ETF approval in 2025. So lets dig deep into this topic and find which crypto currency have a highest possibility of getting its ETF.
The approval of Spot Bitcoin ETF and Ethereum ETF sparked discussions about potential for approval of Solana ETF. At the time of writing, there were no approved Solana ETFs in the United States. However, several companies have filed applications with the SEC. On June 27, 2024, VanEck filed for the spot Solana ETF to list on the Cboe BZX Exchange. 21Shares also submitted a proposal shortly after VanEck’s application.
However, Brazil has taken this to the next level by approving two Solana ETFs, marking them as the first in the world. On August 7, 2024, Brazil’s Securities and Exchange Commission (CVM) approved the world’s first Solana ETF. Moreover, the second approved ETF is offered by Hashdex, a Brazil-based asset manager.
Analysts predicts that first spot Solana ETF to launch as early as Q1 2025. However, any specific date was not given right now. Experts belives that if regulatory hurdles were cleared, Solana ETFs could attract good investments in the crypto space.
XRP positions itself as the third strongest cryptocurrency, behind Bitcoin and Ethereum in terms of market cap. Now after Bitcoin and Ethereum investors await the potential debuts of XRP ETF in the market.
Currently there was no XRP ETFs was approved but major companies have filed applications for their ETFs with the U.S. Securities and Exchange Commission (SEC).
Bitwise filed for a spot XRP ETF in October 2024, acknowledging potential risks related to XRP’s classification as a security. After this 2. 21Shares submitted an application for the “21Shares Core XRP Trust” on November 1, 2024, with Coinbase Custody Trust Company as the custodian. Besides these WisdomTree and Canary Capital has been also entered in the XRP ETF race in early December 2024.
The anticipation surrounding XRP ETFs has already influenced market dynamics as the XRP price has surged over 310% in recent months, driven by speculation about ETF approvals and increased institutional investment. If XRP ETF gets approved, it could lead to significant inflows from institutional investors, similar to what was observed with Bitcoin and Ethereum ETFs.
Canary Capital is currently the only company that has filed for Litecoin exchange-traded fund (ETF) in the United States. The asset manager submitted its S-1 registration form to the U.S. Securities and Exchange Commission (SEC) on October 15, 2024.
ETF analyst Eric Balchunas has indicated that Litecoin may be next in line for a spot ETF approval refers it as the “silver” to Bitcoin being gold. The recent amendments to the filing are seen as a positive sign towards this goal.
For Solana, XRP, and Litecoin to secure SEC approval, they must meet several key regulatory requirements, many of which are influenced by lessons learned from Bitcoin and Ethereum ETFs.
These cryptocurrencies need a regulatory classification resolution for their ETF approval. The SEC’s decision will heavily depend on a clear demonstration of decentralization, transparent governance structure, and Compliance with existing securities regulations.
Moreover, these digital assets also require institutional-grade security measures as the SEC heavily emphasizes investor protection. To gain approval, these assets should offer advanced custody solutions from reputable providers, comprehensive insurance coverage, multi-layered security protocols, and regular security audits.
Besides all this, these assets need robust market demand from institutional and retail investors. Also, they must demonstrate that it has the necessary liquidity to handle large transactions without causing significant price disruptions.
The United States currently witnessed a big political shift as Donald Trump was elected as the new president. Moreover, recently he also announced a new department known as “Department of Government Efficiency” (D.O.G.E.) which will be led by Elon Musk and entrepreneur Vivek Ramaswamy to increase government efficiency.
Both Trump and Elon are the biggest crypto advocates and carry a pro-crypto stance. So for Solana, the regulatory hurdles will be fewer as compared to Bitcoin and Ethereum.
Previously in the campaign, Trump cleared his intentions to fire Gary Gensler and transform U.S. into “crypto capital of the world.” The anticipated resignation of SEC Chair Gary Gensler has led to optimism about a more favorable regulatory environment for crypto products. Analysts suggest that this could pave the way for more crypto ETFs to launch, in coming years.
The path to Solana, XRP, and Litecoin ETF approval in the United States is looking promising, particularly given the changing political landscape. While regulatory hurdles remain, institutional interest and demand for the particular ETFs will play a crucial role in their approval. With Trump’s pro-crypto stance and potential regulatory framework on the horizon, the crypto market may be entering a new era of mainstream financial acceptance.
Also Read: SEC Approval for Spot XRP ETF: When Will It Arrive?
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