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A ‘new wave’ of crypto exchange-traded funds (ETFs) is expected to emerge in 2025 as the regulatory landscape improves under upcoming changes. Trump management, according to Bloomberg Intelligence analysts.
Bitcoin-Ethereum (Ethereum(Bundled products will likely lead the charge, followed by Litecoin)ltc) and Hedera Hashgraph (HBAR). However, legal and regulatory hurdles are expected to delay Solana-linked ETFs (Sol) and XRPleaving their future uncertain.
Bloomberg ETF Analyst Eric BalchunasCiting research by his colleague James Seyphart, he emphasized the positive position of Litecoin due to its close ties to Bitcoin (Bitcoin).
As a fork of Bitcoin, Litecoin could benefit from its commodity classification, which is in line with how the US Securities and Exchange Commission (SEC) treats Bitcoin. Meanwhile, HBAR has avoided being classified as a security so far, putting it at the forefront of cryptocurrencies facing continued regulatory scrutiny.
Seyphart wrote:
“Both Litecoin and HBAR have higher approval probabilities compared to Solana and XRP. However, it is unclear whether there is demand from investors.”
Canary Capital, the new issuer, is currently the sole provider of ETFs linked to Litecoin and HBAR, raising questions about the level of market interest in these products.
Possible delays
Analysts also highlighted that the Solana and XRP ETFs could face greater delays.
The SEC’s rejection of Solana’s recent filings and the legal ambiguity surrounding both tokens have complicated their prospects for approval. Additionally, ongoing lawsuits focusing on their classification as securities remain a major hurdle, and analysts note that these issues will need to be resolved before ETF applications gain any traction.
The broader outlook for cryptocurrency ETFs depends on the direction of regulatory leadership under the incoming US administration. More clarity around token classifications could reshape the ETF landscape and allow altcoins like Solana and XRP to join the Bitcoin and Ethereum products.
While 2025 could mark a turning point for cryptocurrency ETFs beyond Bitcoin and Ethereum, analysts have warned that legal uncertainty and tepid investor demand for alternative cryptocurrency products may continue to limit near-term momentum.
