With the new crypto-friendly administration, could SOL, XRP, and DOGE be the next altcoins to have ETFs established in 2025?
Bloomberg analyst Eric Balchunas expects the market to see a series of altcoin ETFs approved, with these new funds launching in waves throughout 2025 rather than all at once
Optimism regarding the approval of crypto ETFs has surged following Donald Trump's victory in the November presidential election and the announcement of Gary Gensler's resignation as Chairman of the U.S. Securities and Exchange Commission (SEC).
Under Gensler's leadership, the SEC maintained a strict stance on digital assets and crypto-based financial products. Even as major financial institutions like BlackRock launched spot Bitcoin ETFs and attracted tens of billions of dollars in investment, Gensler remained firm in his views.
Many analysts believe that with Gensler stepping down and a new leader taking over the SEC, the likelihood of approving crypto ETFs will increase. Bloomberg analyst James Seyffart suggested that the combined Bitcoin and Ethereum ETFs from Hashdex, Franklin Templeton, and Bitwise could be among the first to receive approval.
Meanwhile, altcoin ETFs such as those for SOL and XRP may have to wait until the new SEC administration takes over before they are seriously considere
Besides BTC, ETH, SOL, and XRP, James Seyffart also believes that LTC and HBAR could be approved sooner. The reason is that the SEC has never classified LTC and HBAR as securities, which could help them avoid facing strict legal hurdles.
However, Seyffart also acknowledged that he is uncertain whether investor demand for these ETFs would be strong enough to drive their launch.
Current ETFs Awaiting Approval. Source: X James Seyffart.
Earlier, Nate Geraci, President of ETF Store, stated that it is highly likely that Solana ETFs will be approved by the end of next year. This indicates that the market continues to closely monitor the SEC's policy developments and the potential changes under the new leadership.
DOGE ETF is highly likely to be approved. Source: X Investments_CEO.
Eric Balchunas previously shared: 'What may seem like a joke today could become tomorrow's ETF.'
Eric is implying that even assets like Dogecoin (DOGE), which were once considered a joke, could become part of an official ETF. He believes that in the current market environment, any asset with sufficient investor demand has the potential to become an ETF.
i think someone will try to file for a DOGE ETF. If you think that’s far-fetched, I don’t see it that way.
--- Balchunas stated ---
BTC ETF Trading Data for December 17. Source: SosoValue.
Since their approval in January 2024, the Net Asset Value (NAV) of the spot Bitcoin ETFs has reached approximately $1.373 billion, with total net inflows into the funds now at $35.962 billion. The market capitalization has reached $120 billion, with total assets under management of 1,135,284 BTC.
The Ethereum ETFs currently manage assets of around $10 billion, with total trading volume reaching $670 million.
