Analysts from Bloomberg have a positive view that the outcome depends on cryptocurrencies Exchange-traded funds Or the ETF will receive SEC approval in 2025.
Cryptocurrency investors may have a lot of options next year when it comes to publicly traded crypto securities, one of which will be a mix of Bitcoin and Ethereum.
A wave of cryptocurrency ETFs
Two Bloomberg analysts predict that exchange-traded funds — XRP and Solana in particular — will soon flood the market. Cryptocurrency space They expect the Securities and Exchange Commission to approve many of these investment tools next year.
“We expect a wave of cryptocurrency ETFs next year, although not all at once,” Eric Balchunas, a Bloomberg analyst, said in a post.
An air of optimism continues to shroud the cryptocurrency market, as the incoming administration of US President-elect Donal Trump indicates that current SEC Chairman Gary Gensler will step down from his position.
We expect a wave of cryptocurrency ETFs next year, but not all at once. First, the combined ETFs will likely be btc + eth, then prob Litecoin (bc has a fork btc = commodity), then HBAR (bc is not classified as a security) and then XRP/Solana (which is classified as pending securities). .. pic.twitter.com/29vMdciZxE
– Eric Balchunas (@EricBalchunas) December 17, 2024
Gensler is seen as an anti-crypto government official who has implemented strict regulations on the cryptocurrency space that are hindering the growth of digital assets in the United States.
Many cryptocurrency traders are very optimistic that Trump will appoint a new SEC head who will be more open to cryptocurrency exchange-traded funds.
Bitcoin-Ethereum ETF to get started
Balchunas and fellow Bloomberg analyst James Seyfart believe an exchange-traded fund combining bitcoin and ethereum will be the first cryptocurrency-based ETF to get the green light from the SEC.
“Bitcoin and Ethereum ETFs from Hashdex, Franklin (Templeton), and Bitwise will likely be the next crypto ETFs to be approved,” Seyphart said in a post.
Asset managers from Bitwise, Hashdex and Franklin Templeton expect to launch this exchange-traded fund that combines the two cryptocurrencies with the largest market cap. Hence, these asset managers have already expressed interest in issuing publicly traded securities.
Earlier this year, the Securities and Exchange Commission approved the creation of an ETF Bitcoin In January and another for Ethereum in July. Meanwhile, the new exchange-traded fund will be the first time the two largest cryptocurrencies have been combined into a single ETF.
Expect a delay for XRP-Solana
Some cryptocurrency analysts have claimed that ETFs that combine XRP and Solana may have to wait a little longer, speculating that the current SEC administration will not allow the securities to be traded given that these digital assets have been involved in legal battles where XRP and Solana are labeled As securities.
Business journalist Eleanor Terrett noted that two of Solana’s five applications for exchange-traded funds were rejected by current SEC leadership this month.
Meanwhile, Balchunas and Seyvart remain optimistic that the XRP-Solana joint stock will get the go-ahead from the new SEC administration.
“Both Solana and XRP ETFs will have to wait until a new SEC administration takes control before they are seriously considered,” Seyphart noted.
Featured image from Reuters, chart from TradingView
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