30s Summary

Bloomberg analyst Eric Balchunas predicts the first ETF tracking Bitcoin and Ether will appear in 2025, opening the door for further crypto funds. Litecoin and Hedera are considered more likely to gain ETF approval due to their classification as commodities or non-securities. Meanwhile, the SEC has rejected several requests for a Solana ETF. Crypto assets SOL and XRP, considered securities by the SEC, may find approval under Trump’s SEC nominee. However, it remains uncertain whether investors will support these potential ETFs. SEC chairman Gary Gensler and commissioner Jamie Lizarrage plan to resign following Trump’s inauguration, possibly leading to crypto-friendly replacements.

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According to Eric Balchunas, a top-flight ETF specialist at Bloomberg, we’re likely to see the first fund tracking Bitcoin and Ether in 2025. He predicts that this will kick off a flood of new crypto funds from then on. Eric and another ETF brainiac, James Seyffart, reckon that after the Bitcoin and Ether fund, the doors will open for ETFs tracking Litecoin or Hedera.

But it’s not all smooth sailing. The Securities and Exchange Commission (SEC) recently rejected multiple applications for a Solana ETF. That means funds for SOL and XRP will probably get the green light only once Donald Trump’s nominee takes over at the SEC.

Eric and James think the SEC has a better view of Litecoin and Hedera. Litecoin has better chances, mainly because it’s considered as a “commodity” as it’s a fork of Bitcoin. As for Hedera, it’s not been tagged as a security by the SEC, which might make it easier for a fund to get approval.

However, XRP and SOL aren’t so lucky as they’ve been labeled securities by the SEC and are currently embroiled in a legal tussle with the SEC over XRP’s status.

Even though Litecoin and Hedera ETFs have better chances of gaining approval, it’s not yet clear if investors will bite. Lots of crypto folks believe that the SEC will be friendlier towards crypto assets under Trump.

Gary Gensler, the current SEC chair, announced he would step down from the agency on the day of Trump’s inauguration while his fellow Democratic commissioner, Jamie Lizarrage said he would also quit a few days before that. There’s also speculation that a nominee favorable to crypto may replace SEC Commissioner Caroline Crenshaw.