The cryptocurrency investment landscape could be on the brink of a major expansion in 2025, with experts predicting a wave of new crypto exchange-traded funds (ETFs) following the landmark approvals of Bitcoin and Ethereum ETFs. Bloomberg analysts Eric Balchunas and James Seyffart have emerged as key voices forecasting this shift, pointing to regulatory changes and evolving market dynamics as catalysts for broader digital asset adoption in traditional finance.
Their outlook, shared publicly on social media and in industry commentary, suggests that the next phase of crypto ETF development will move beyond BTC and ETH—paving the way for products tied to assets like Litecoin (LTC), Hedera (HBAR), Solana (SOL), and XRP, albeit with varying timelines and regulatory hurdles.
The Post-Gensler Era and Regulatory Shifts
A pivotal factor driving these predictions is the anticipated leadership change at the U.S. Securities and Exchange Commission (SEC). Current SEC Chair Gary Gensler, known for his cautious and often skeptical stance toward cryptocurrencies, is expected to step down in January 2025 following Donald Trump’s election victory. Gensler’s tenure has been marked by stringent enforcement actions and a reluctance to approve most crypto-based financial products, particularly those involving tokens deemed securities.
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With a potential change in administration, many market observers believe the SEC may adopt a more open posture toward digital assets. Balchunas captured this sentiment succinctly in a widely circulated post on X (formerly Twitter), stating:
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana…”
This sequence reflects not just market demand but also a strategic reading of how regulators might categorize different cryptocurrencies based on their technical design, issuance model, and legal status.
What Comes After Bitcoin and Ethereum ETFs?
The approval of spot Bitcoin and Ethereum ETFs in 2024 marked a turning point for crypto legitimacy in mainstream finance. Now, institutional investors and asset managers are looking ahead to the next tier of digital assets that could meet regulatory standards for ETF listing.
According to Balchunas and Seyffart, the most likely candidates for near-term approval include:
- Bitcoin + Ethereum combo ETFs: These multi-asset funds are already in development by firms like Hashdex, Franklin Templeton, and Bitwise. They offer diversified exposure to the two largest cryptocurrencies while staying within relatively safe regulatory boundaries.
- Litecoin (LTC) ETFs: As a direct fork of Bitcoin, Litecoin shares many of BTC’s structural characteristics. Regulators have historically treated it as a commodity rather than a security, giving it a stronger chance for ETF approval.
- Hedera (HBAR) ETFs: HBAR stands out due to its unique governance model and lack of central control. Unlike some other platforms, it has not been formally labeled a security by the SEC—a critical distinction that could fast-track its path to an ETF.
Why HBAR Could Be a Frontrunner
Hedera Hashgraph has long positioned itself as a decentralized public network with enterprise-grade capabilities. Its consensus mechanism, governed by a council of global organizations, differentiates it from blockchain-based systems and may help insulate it from securities classification.
Because HBAR has not been involved in any major SEC enforcement action—and unlike XRP or SOL, hasn’t been explicitly called a security in litigation—it occupies a favorable regulatory gray area. This makes it an attractive candidate for early approval under a more crypto-friendly SEC regime.
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Moreover, HBAR’s use cases in supply chain tracking, tokenization, and micropayments align with institutional interest in real-world asset (RWA) tokenization—a trend gaining momentum across Wall Street.
Challenges for Solana and XRP ETFs
While HBAR and LTC appear to have clearer paths forward, Solana (SOL) and XRP face significant legal headwinds. Both tokens have been central to ongoing regulatory scrutiny:
- XRP: The SEC previously sued Ripple Labs, alleging unregistered securities offerings through XRP sales. Although recent court rulings have favored Ripple in part—clarifying that XRP itself isn’t inherently a security—uncertainty remains over secondary market transactions.
- Solana (SOL): Despite its popularity and robust ecosystem, SOL has been mentioned in SEC complaints against exchanges like Coinbase and Binance as a potential unregistered security. Until these cases conclude or the SEC issues formal guidance, SOL ETFs remain unlikely.
James Seyffart emphasized that investor demand alone won’t be enough to overcome these legal barriers. Approval for XRP or Solana ETFs will likely depend on either court outcomes or policy shifts under new SEC leadership.
Will There Be Enough Demand?
Even if regulatory conditions improve, a crucial question remains: will investors flock to niche crypto ETFs like LTC or HBAR?
Seyffart raised this concern, noting that while regulatory clearance might be achievable, actual market appetite could be limited. Bitcoin and Ethereum dominate crypto portfolios for most institutions and retail investors alike. Smaller-cap assets may struggle to generate sufficient trading volume or asset under management (AUM) to justify dedicated ETF structures.
However, proponents argue that diversification benefits and growing interest in high-throughput, low-cost networks could drive demand over time—especially if macroeconomic conditions favor risk-on assets.
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Frequently Asked Questions
Q: Is an HBAR ETF likely to be approved in 2025?
A: Yes, according to Bloomberg analysts, HBAR is among the top candidates for ETF approval in 2025 due to its non-security classification and decentralized structure.
Q: Why are Litecoin and HBAR considered safer bets than XRP or Solana?
A: Both LTC and HBAR are viewed as commodities rather than securities because of their decentralized nature and lack of formal SEC action against them—unlike XRP and SOL, which are entangled in ongoing litigation.
Q: What role does the SEC leadership change play in crypto ETF approvals?
A: A new SEC chair following Gensler’s departure could bring a more balanced or pro-innovation approach to digital asset regulation, potentially accelerating approvals for previously stalled products.
Q: When might we see Bitcoin-Ethereum combo ETFs launch?
A: These multi-asset ETFs are expected to emerge early in 2025, with firms like Franklin Templeton and Bitwise already preparing filings.
Q: Could Solana or XRP ever get an ETF?
A: It’s possible—but only after legal uncertainties are resolved. Court rulings or regulatory clarity will be necessary before the SEC considers such products.
Q: Are smaller crypto ETFs like LTC or HBAR worth investing in?
A: While they offer diversification, investor interest may be limited compared to BTC or ETH. Success will depend on both market performance and broader adoption trends.
As the crypto market evolves alongside regulatory frameworks, 2025 could become a defining year for digital asset integration into mainstream finance—with HBAR, Litecoin, and hybrid BTC-ETH funds leading the next wave of innovation.