Investment analysts from Bloomberg have identified Solana and XRP as leading candidates for new exchange-traded funds (ETFs) in 2025. This development is anticipated as part of a broader shift in regulatory approach under new leadership at the U.S. Securities and Exchange Commission (SEC).
Understanding Spot Crypto ETFs
A spot crypto ETF is a type of investment fund that tracks the real-time price of a specific cryptocurrency. These funds are traded on traditional stock exchanges, allowing investors to gain exposure to crypto price movements without the need to purchase or store the actual digital assets.
This structure provides a familiar and regulated avenue for institutional and individual investors to participate in the cryptocurrency market. The success of Bitcoin and Ethereum ETFs, which launched earlier, has paved the way for this new wave of products.
The Path to Approval for New Crypto ETFs
According to analysts Eric Balchunas and James Seyffart, the political shift following the U.S. presidential election is a key driver. The anticipated appointment of a new SEC chair is expected to create a more favorable environment for cryptocurrency innovation.
The analysts suggest that a "wave of cryptocurrency ETFs" could be launched in the coming year. However, they caution that approvals will not happen simultaneously. Each asset faces its own unique regulatory challenges that must be resolved before receiving the green light.
Regulatory Hurdles for Solana and XRP
The primary obstacle for Solana and XRP is their current classification by the SEC. The agency has previously labeled these cryptocurrencies as unregistered securities in various lawsuits, not commodities.
This distinction is critical. For a spot ETF to be approved, the underlying asset must be considered a commodity, like Bitcoin and Ethereum. The SEC would need to change its stance on these assets for their associated ETFs to move forward.
This regulatory shift is considered a strong possibility with new leadership in place. The change would significantly increase the odds of approval for these specific funds.
Which Cryptocurrencies Are Next in Line?
While Solana and XRP attract significant attention, they are not first in the queue. Analysts believe that ETFs tracking a combination of Bitcoin and Ethereum are the most likely to be approved next.
Following those, Litecoin is also a strong contender. It is often viewed as a faster and lighter version of Bitcoin, and its regulatory status may present fewer complications.
Several major asset managers, including Grayscale, Bitwise, and VanEck, have already submitted applications for new spot crypto ETFs. Wisdom Tree recently applied for a fund focused specifically on XRP, signaling strong institutional interest. For those looking to understand the market movements of these assets, you can track live crypto valuations and trends.
Analyzing the Potential Market Impact
The first spot Bitcoin ETFs were immensely successful, quickly gathering assets and outperforming many traditional ETFs. Their launch also contributed to pushing Bitcoin's price to new all-time highs. Ethereum ETFs, while successful, have not seen the same level of explosive growth.
However, analysts temper expectations for this new wave of products. They note that most alternative cryptocurrencies, or "altcoins," are not as widely recognized or adopted as Bitcoin.
One analyst compared the launch of multiple crypto ETFs to "spaghetti thrown at the wall," suggesting that issuers are launching many products hoping that a few will succeed and gain traction with investors.
The prevailing view is that Bitcoin will continue to dominate the ETF landscape for the foreseeable future, potentially holding a vast majority of the total assets invested in crypto ETFs for years to come.
Frequently Asked Questions
What is a spot cryptocurrency ETF?
A spot crypto ETF is an exchange-traded fund that holds the actual cryptocurrency and tracks its price. It allows investors to buy a share of the fund through a brokerage account, gaining crypto exposure without dealing with digital wallets or exchanges.
Why are Solana and XRP ETFs not approved yet?
The main hurdle is regulatory. The U.S. SEC has classified them as unregistered securities in past lawsuits. For an ETF to be approved, the agency must recognize them as commodities, a status currently only held by Bitcoin and Ethereum.
How could the political change affect ETF approvals?
A new SEC leadership is expected to adopt a more crypto-friendly posture. This could lead to a re-evaluation of how certain cryptocurrencies are classified, thereby increasing the likelihood of approval for a wider range of ETF applications.
Which crypto ETF is most likely to be approved after Bitcoin and Ethereum?
Analysts point to a combined Bitcoin-Ethereum ETF as the next probable approval. Litecoin is also a strong candidate due to its technological similarities to Bitcoin and potentially clearer regulatory path.
Will these new ETFs be good investments?
Investment potential varies. While they offer easier access, their performance is directly tied to the volatile crypto market. Bitcoin ETFs are expected to remain the dominant force, and success for newer altcoin ETFs is not guaranteed. Always conduct thorough research before investing.
How can I stay updated on ETF approval news?
The best sources are official announcements from the SEC and updates from major financial news outlets. Regulatory processes are public, and applications are often published for comment, providing transparency for investors. To monitor the latest developments in crypto finance, following dedicated market analysis platforms is recommended.