Bloomberg Analyst Forecasts Litecoin, HBAR, Solana, and XRP ETFs by 2025
January 10, 2024, marks a significant milestone for the crypto industry with the approval of the first Bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission (SEC). These 11 ETFs provide traditional investors access to Bitcoin through regulated investment vehicles.
The impact was immediate, with ETF inflows continuing. According to Coinglass data, over $123.87 billion worth of BTC has been accumulated through these ETFs, managed by various companies.
Following this momentum, the SEC also approved Ethereum ETFs, indicating an increasing acceptance of crypto investment vehicles. This expansion enhances the connection between traditional finance and digital assets, offering investors diversified exposure through familiar structures.
Analyst Projects Multiple Crypto ETF Approvals for 2025
Bloomberg analyst Eric Balchunas predicts that 2025 will see a significant rollout of cryptocurrency ETFs, starting with combined Bitcoin and Ethereum ETFs. He anticipates Litecoin ETFs to follow due to its classification as a commodity, being a Bitcoin fork.
Balchunas also mentions potential HBAR (Hedera) ETFs, as it is not classified as a security. He suggests that XRP and Solana ETFs may face delays until at least 2026 due to ongoing regulatory issues.
Vance Spencer, co-founder at Framework Ventures, supports the likelihood of BTC/ETH ETFs in the coming year but notes that XRP and Solana ETFs could be postponed further. He emphasizes the importance of backing from major financial institutions, such as BlackRock and Fidelity, for the success of these ETFs.
Potential Market Impact of Future Crypto ETF Approvals
Approval of new crypto ETFs could significantly influence market dynamics. For Litecoin, gaining ETF approval could attract substantial institutional interest, positioning it alongside Bitcoin and Ethereum in traditional portfolios.
HBAR's unique regulatory status might pave the way for other cryptocurrencies to achieve ETF approval, potentially establishing a new category of digital assets. An ETF approval for XRP would represent a pivotal shift in its regulatory standing, setting a precedent for similar recognition of other digital assets.
This expanding ETF ecosystem indicates the maturation of the cryptocurrency market. The influx of institutional investors could lead to more stable pricing and reduced volatility for impacted cryptocurrencies, enhancing market infrastructure, liquidity, and price discovery mechanisms.