Bloomberg analyst predicts altcoin ETF approvals will transform the crypto market amid a wave of SEC filings.
Analyst Foresees Altcoin ETF Surge
Bloomberg’s Eric Balchunas projects a boom in altcoin exchange-traded funds (ETFs) by early 2025, barring major market disruptions.
Currently, 14 altcoin ETFs await the US Securities and Exchange Commission’s (SEC) approval. These include funds linked to Solana (SOL), XRP, Litecoin (LTC), and others.
Market Transformation by 2025
Balchunas believes the number of altcoin-related ETF filings could triple in the next few months. He expects over 40 listings by January 2025.
Four Solanas, 3 XRPs, 2 conversions and a Litecoin in a pear tree.. nice look at the coming ‘twelve months of alt coin ETFs’ Barring monster crash, its about to get pretty wild for this young category. Don’t be surprised if this list is triple in size by end of Jan via @JSeyff
“The approval of these ETFs will likely make the crypto market ‘wild,’” he emphasized, noting their potential impact on market dynamics.
Favorable Conditions Drive Growth
The post-election environment under Donald Trump has encouraged asset managers to file new ETFs aggressively. Nate Geraci, ETF Store CEO, said issuers were prepared for this shift.
Geraci stated, “There’s no downside to getting aggressive now,” referencing heightened optimism among crypto investors.
Altcoin ETFs in the Pipeline
Recent filings include Canary Capital’s Hedera (HBAR) ETF and Bitwise’s Solana (SOL) trust. Both underscore the growing demand for diversified crypto investment products.
Mixed ETFs, such as those offering Bitcoin (BTC) and Ethereum (ETH) exposure, have also gained traction. NYSE recently filed to list one such product.
Solana ETFs May Face Delays
Despite growing interest, Bloomberg analyst James Seyffart notes that Solana ETFs could face hurdles. A similar filing in August was withdrawn due to regulatory ambiguities.
Seyffart predicts approvals within two years but warns the current administration may fail to advance these listings soon.
Litecoin ETFs Likely to Advance
Canary’s Litecoin ETF, filed in October, appears more promising. Galaxy Digital’s Alex Thorn argues LTC’s fair launch increases its chances of SEC approval.
Thorn stated, “Litecoin’s absence of a pre-mine or token sale sets it apart from others, reducing its classification risk as a security.”
SEC’s Role in Crypto Innovation
As altcoin ETF filings surge, analysts and asset managers closely monitor the SEC’s stance. Many believe clear regulations will define crypto’s path to mainstream adoption.
What Lies Ahead for ETFs and Crypto Markets
A wave of altcoin ETF approvals could reshape the crypto investment landscape. Analysts expect the SEC’s decisions to drive innovation and market activity through 2025.
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