2025 could be a breakthrough year for many cryptocurrency ETFs. As of today, there are only two spot ETFs available in the US – Bitcoin and Ethereum. This limits the ability of large investors to invest their capital in the various altcoin ecosystems anyway. But what will change next year? Well-known analysts shared their thoughts on this matter.
Which Cryptocurrency ETFs to Buy in 2025?
It’s been less than a year since the SEC approved Bitcoin spot ETFs, but now more than 5 percent of the total BTC supply is managed by such ETFs.
Overall, eleven Bitcoin ETFs in the US have accumulated more coins than are in the known wallets of the anonymous creator of the main cryptocurrency, under the pseudonym Satoshi Nakamoto.
Cryptocurrency ETF Assets Under Management
Anchorage Digital CEO and co-founder Nathan McCaulay commented on the effect of ETFs in an interview with The Block . Here’s what he said.
Since January, the story of crypto ETFs has been a sign of continued market maturity. The market is becoming more developed for both institutional and retail players.
Bitcoin ETFs were approved and launched in January 2024, followed by the approval of Ethereum spot ETFs in July. According to ETF Store President Nate Geraci, support for a wider range of altcoins will be a key issue for 2025. Here’s his take.
In general, cryptocurrency regulation trends have changed significantly, and there is now much more optimism about the possibility of additional digital asset-based ETFs entering the market.
US Spot Bitcoin ETF Inflows and Outflows
The race to get altcoin spot ETFs approved is unlikely to involve BlackRock, the Wall Street investment giant and the world’s largest investment firm. BlackRock currently owns the largest Bitcoin ETF, the iShares Bitcoin Trust (IBIT). However, the company says that even its own clients do not own IBIT shares, meaning the firm will focus on developing that sector for now.
The prospect of listing new ETFs has long been opposed by the leadership of the US Securities and Exchange Commission (SEC), which continues to fight the coin industry even now. However, the current chairman of the regulator, Gary Gensler, announced that he will leave his post on January 20, 2025, that is, on the day of Donald Trump’s inauguration.
At the same time, the newly elected president has nominated Paul Atkins, a longtime supporter of cryptocurrencies, to head the SEC. According to McCaulay, this factor will play into the hands of the coin market. Here is his response.
The next presidential administration and Congress promise to provide greater regulatory clarity to the ecosystem. In 2025, the industry will be watching several key areas: new legislation on crypto and stablecoins in particular, a more open attitude toward innovation in digital assets, and movement around the U.S. Bitcoin Strategic Reserve.
Comparing Bitcoin and Gold Inflows, Adjusted for Inflation
The Tax Cuts and Jobs Act, passed in 2017 under Trump, expires at the end of next year. That could pave the way for cryptocurrency-related tax proposals, including a bill to provide tax clarity for digital assets that could, among other things, clarify that staking rewards should only be taxed when the assets are sold, not when they accrue.
Could a Solana-based ETF hit the US market by the end of 2025? Nate Geraci believes that this is a very likely event.
I believe there is a high probability that a Solana ETF will be approved by the end of next year. It appears that the SEC is already engaging with issuers on this product, which is clearly a positive sign.
The success and precedent of Bitcoin and Ethereum spot ETFs, along with a more crypto-friendly regulatory environment, will lead to the emergence of a SOL ETF within the next year, according to Alexander Blum, CEO of Two Prime Digital Assets.
List of current applications for crypto ETF
However, analysts at JPMorgan say the SEC could require unregistered securities lawsuits for these assets to be resolved before approving spot ETFs. That would delay new ETF approvals and require refilings that would take longer to process.
There are currently multiple filings for a variety of altcoin ETFs, including Solana, XRP, and even Hedera, as well as index ETFs from Grayscale and Bitwise. Bloomberg analysts Eric Balchunas and James Seyffarth predict a “wave” of new ETFs — including a combined Bitcoin-Ethereum ETF, Litecoin and Hedera, and spot funds for Solana and XRP.
