As 2024 draws to a close, the cryptocurrency market is buzzing with excitement. Bitcoin has reached an unprecedented all-time high (ATH) of $107,000, painting the altcoin market in vibrant green. This bullish trend is largely driven by expectations of interest rate cuts in December, a factor that historically favors Bitcoin. Additionally, the inclusion of MicroStrategy in the Nasdaq 100 index has further fueled the rally.
The Anticipation of New Crypto ETFs
In a recent X post, Bloomberg’s Eric Balchunas, in collaboration with James Seyffart, hinted at the imminent launch of Bitcoin-Ethereum combination ETFs. These are expected to be followed by ETFs for Hedera (HBAR). However, Solana (SOL) and XRP ETFs might experience delays due to ongoing legal issues with the SEC.
As we look forward to the coming year, the cryptocurrency community anticipates a surge in ETF offerings. The first to hit the market will likely be the Bitcoin-Ethereum ETFs, followed by Litecoin, which benefits from its status as a Bitcoin fork and is considered a commodity. Hedera, not being classified as a security, is also expected to make an early debut.
The Impact of Regulatory Changes in the US
Optimism for new crypto ETFs has surged with the recent nomination of Paul Atkins by President-elect Donald Trump. Atkins, a pro-crypto former SEC commissioner, is expected to pave the way for these ETFs by implementing a more lenient regulatory approach. This change in leadership is anticipated to clear the path for a broader range of cryptocurrency ETFs in the US.
Spotlight on Solana and XRP ETFs
While proposals for Solana and XRP ETFs have been submitted, their approval is not expected until the new SEC leadership is in place in January. According to Bloomberg analysts, these ETFs could receive the green light by late 2025. Nate Geraci, President of ETF Store, is optimistic about the approval of Solana ETFs by the end of next year.
Bitcoin adoption and the rise of crypto ETFs are driving prices to new heights. Discover where Bitcoin prices are headed next!
Altcoins in Focus
Other altcoin ETFs, such as those for Litecoin (LTC) and Hedera (HBAR), might gain approval sooner due to their regulatory clarity. Eric Balchunas highlighted that neither Litecoin nor HBAR has been classified as a security by the SEC, which simplifies their path to market. However, there are questions about whether there’s sufficient investor demand for these products.
Looking ahead, the number of altcoin ETF applications is expected to triple in the coming months, reflecting a growing interest in diversifying crypto investment options. Issuers appear confident in the regulatory shift. Two Prime Digital Assets CEO Alexander Blume remarked, “They wouldn’t waste the time and expense if they didn’t believe approval was likely.”
- Also Read:
- XRP is the Largest Token After BTC & ETH Despite Trading Below $3—What to Expect if the Price Marks an ATH
The market is opening doors for alternative investment options. With Bitcoin’s soaring prices, there’s a demand for fresh inflows. ETFs have helped shape the market this year, and with new ETFs expected in Q1, traders will have exciting opportunities to diversify their portfolios. While analysts foresee challenges in approving XRP and Solana ETFs, community-driven support for these cryptocurrencies is strong, with prices showing signs of a breakout in January.
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FAQs
When will Solana and XRP ETFs be approved?
Solana and XRP ETFs may gain approval by late 2025, pending SEC leadership changes and regulatory clarity.
Which altcoin ETFs could launch next?
Altcoin ETFs like Litecoin and Hedera may launch soon, as they have clearer regulatory paths and avoid SEC classification as securities.
