Bloomberg’s senior ETF analyst, Eric Balchunas, recently shared his insights on the potential impact of altcoin ETFs on the crypto market in 2025. According to Balchunas, the approval of over 40 altcoin-related ETFs could lead to a significant surge in market activity, making the crypto space “pretty wild” in the coming years.
Currently, there are 14 altcoin-related ETFs awaiting approval from the US Securities and Exchange Commission (SEC). These ETFs cover a range of assets, including Solana, XRP, Hedera, Litecoin, and even baskets of assets that include both Bitcoin and Ethereum. Balchunas predicts that this list could triple in size within the next two months, further expanding the options for investors looking to gain exposure to different altcoins.
The positive outlook for altcoin ETFs comes in the wake of President Donald Trump’s victory in the US elections, according to ETF Store CEO Nate Geraci. He suggested that the election results could prompt the listing of several spot crypto ETFs, as multiple issuers are prepared to capitalize on the favorable environment. Since Geraci’s publication, three new ETF listings have already been registered, including an HBAR ETF, a SOL trust, and a mixed BTC and ETH ETF.
Despite the optimism surrounding altcoin ETFs, there are still uncertainties regarding regulatory approval. Bloomberg’s ETF analyst, James Seyffart, believes that Solana-related ETFs could be approved within two years, but there is a risk that the current administration may not support these listings. This was evidenced in August when the Cboe removed filings for VanEck and 21Shares’ Solana ETFs, despite being registered in July.
On the other hand, the Litecoin ETF filed by Canary in October may have a higher chance of approval, according to Alex Thorn, head of research at Galaxy Digital. Thorn highlighted the fair launch of LTC, as it did not involve a pre-mine or token sale, making it a more favorable candidate for ETF approval. Despite the uncertainties, Thorn believes that the SEC is unlikely to classify LTC as a security, paving the way for its potential listing as an ETF.
Overall, the growing interest in altcoin ETFs signals a shifting landscape in the crypto market, with investors and regulatory bodies closely monitoring the developments in this space. As more altcoin-related ETFs await approval and potential listing, the market could see increased volatility and activity, creating new opportunities and challenges for market participants in the years to come.
