- Bloomberg analyst Eric Balchunas stated that altcoin-related exchange-traded funds (ETFs) awaiting approval will make the crypto market “pretty wild” in 2025
- He expects over 40 altcoin ETF listings by the end of January, including funds providing exposure to Solana, XRP, Hedera, Litecoin, and baskets of Bitcoin and Ethereum
- The favorable environment for altcoin ETF approvals follows Donald Trump’s victory in the 2024 US presidential election, with predictions of multiple spot crypto ETF listings
Eric Balchunas, a senior ETF analyst at Bloomberg, believes over 40 altcoin-related ETF listings could happen by the end of January 2025. He says this will make the crypto market “pretty wild.
Balchunas’ Prediction
Balchunas shared that 14 altcoin-related ETFs await approval from the US Securities and Exchange Commission (SEC) in the next 12 months. The funds would provide exposure to assets like Solana (SOL), XRP, Hedera (HBAR), Litecoin (LTC), and baskets of cryptocurrencies.
Additionally, Balchunas expects the number of proposed altcoin ETFs to triple within two months.
Favorable Regulatory Environment
Following President Donald Trump’s re-election victory, ETF Store CEO Nate Geraci predicted several spot crypto ETF approvals. He stated asset managers are likely to aggressively pursue listings given the election outcome.
Since then, three new ETFs have been proposed. This includes a surprising HBAR ETF filing from Canary Capital on November 12th. Additionally, Bitwise registered a SOL trust and NYSE aims to list a mixed Bitcoin (BTC) and Ethereum (ETH) ETF.
However, Bloomberg ETF analyst James Seyffart believes Solana ETF approvals could take up to two years. He notes the current administration could fail to acknowledge new filings, as the SEC already did in August.
Likelihood of Approval
Litecoin’s ETF proposal may have the best chance of approval, Galaxy Digital’s Alex Thorn told CryptoSlate. He says LTC is often viewed as a “fair” listing since it lacked a pre-mine and token sale.
Conclusion
While the SEC’s stance remains uncertain, analysts believe several altcoin ETFs could be approved over the next two years. This would significantly expand crypto investment options.
