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SEC Crypto ETF Approval in 2025: Bitcoin and Ether Lead the Charge

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Sec Crypto Etf Approval In 2025: Bitcoin And Ether Lead The Charge

SEC Crypto ETF- Crypto ETFs Surge in 2025: Bitcoin and Ether Set to Lead the Market

SEC Crypto ETF– The launch of a cryptocurrency exchange-traded fund (ETF) that tracks both Bitcoin and Ether is expected to be the first in a series of new crypto-focused ETFs in 2025. This forecast comes from senior Bloomberg ETF analyst Eric Balchunas, who believes that these funds will spark a broader wave of crypto ETFs in the coming year.

A Wave of New Cryptocurrency ETFs on the Horizon for 2025

Eric Balchunas shared his insights on social media, stating that the launch of a Bitcoin-Ether combo fund will be just the beginning of a new era for cryptocurrency ETFs. “We expect a wave of cryptocurrency ETFs next year, albeit not all at once,” Balchunas tweeted on December 17, referencing a detailed analysis by his colleague, James Seyffart.

Sec Crypto Etf Approval In 2025: Bitcoin And Ether Lead The Charge
Source: Eric Balchunas

The analysts predict that after the first Bitcoin and Ether ETF launch, new funds will follow, potentially tracking other cryptocurrencies like Litecoin (LTC) and Hedera (HBAR). These new crypto ETFs aim to provide investors with more exposure to digital assets, beyond just the most well-known cryptocurrencies like Bitcoin and Ether.

The SEC’s Stance on Cryptocurrency ETFs

One major hurdle for the cryptocurrency ETF market has been the approval process from the U.S. Securities and Exchange Commission (SEC). The SEC has been cautious about allowing crypto-based financial products, and on December 7, it rejected several Solana (SOL) ETFs, which had been in the pipeline. However, James Seyffart believes that ETFs tracking Solana (SOL) and XRP (XRP) are unlikely to get SEC approval until a new chairman, likely nominated by President-elect Donald Trump, takes office. This shift in leadership is expected to bring a more favorable attitude towards crypto assets.

Why Litecoin and Hedera Could Be Approved First

Balchunas and Seyffart emphasize that the SEC is more likely to approve ETFs for Litecoin and Hedera before larger market-cap assets like Solana and XRP. Balchunas explains that Litecoin, being a fork of Bitcoin, may be seen as a “commodity” by regulators, which would make it easier to gain approval. Additionally, Hedera has not been labeled as a security by the SEC, unlike XRP and Solana. This distinction is significant because securities are subject to stricter regulations, making it more challenging for them to receive approval for exchange-traded products.

Hedera’s more favorable regulatory classification increases its chances of ETF approval, according to the analysts. In contrast, Solana and XRP, which are currently considered securities by the SEC, face a longer road to approval. Ripple Labs, the company behind XRP, is still embroiled in a legal battle with the SEC over the classification of XRP, which further complicates the situation.

Could Litecoin and Hedera ETFs Generate Strong Investor Demand?

Despite the analysts’ optimism regarding the potential approval of Litecoin and Hedera ETFs, there remains uncertainty about how much investor demand these funds will generate. While the analysts expect that these ETFs have a better chance of getting green-lighted compared to Solana or XRP, it’s unclear whether there will be sufficient interest from investors to drive substantial capital into these funds.

The Impact of Trump’s SEC Chair Nominee on Crypto Regulation

A shift in SEC leadership under President-elect Donald Trump could be a game-changer for the cryptocurrency market. Trump has indicated his intention to nominate pro-crypto businessman and former SEC commissioner Paul Atkins to head the SEC. Legal experts believe that Atkins’ leadership could result in deregulation and a more crypto-friendly policy, potentially accelerating the approval of crypto-related financial products, including ETFs.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.

Sec Crypto Etf Approval In 2025: Bitcoin And Ether Lead The Charge

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