2025 Could Be the Year for Crypto ETFs, But Regulatory Hurdles Persist for Solana and XRP

Analysts at Bloomberg Intelligence anticipate a surge in crypto exchange-traded funds (ETFs) by 2025, with regulatory improvements expected under the next U.S. administration.

The forecast points to Bitcoin and Ethereum combination ETFs leading the way, followed by products tied to Litecoin and Hedera Hashgraph. However, the launch of ETFs linked to Solana and XRP remains uncertain due to ongoing legal challenges.

Eric Balchunas, a Bloomberg ETF analyst, noted that Litecoin, a Bitcoin derivative, is well-positioned for approval due to its similarity to Bitcoin and its status as a commodity. Hedera Hashgraph, which has avoided being classified as a security, is also seen as a strong candidate for approval. Both tokens have a higher chance of securing ETF launches compared to Solana and XRP, which face regulatory obstacles.

Despite this optimistic outlook, there are concerns about investor demand for these products, especially since Canary Capital is currently the only firm to file for ETFs tied to Litecoin and Hedera Hashgraph. Furthermore, Solana and XRP’s ongoing legal battles over their classification as securities complicate the approval process for ETFs based on these tokens.

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The success of crypto ETFs in 2025 will largely depend on clearer regulatory guidance, with altcoins like Solana and XRP potentially joining Bitcoin and Ethereum in the ETF space once legal uncertainties are resolved. However, analysts caution that slow progress in resolving these issues and lukewarm investor interest in alternative crypto assets could continue to limit the growth of crypto ETFs in the short term.

Alexander Zdravkov