The year 2024 has ended on a high note with Bitcoin achieving a new all-time high (ATH) of $107,000, while most altcoins continue to trade positively. Several factors have contributed to this impressive rally, including expectations of interest rate cuts in December, which historically have favored Bitcoin. Additionally, the inclusion of MicroStrategy in the Nasdaq 100 index has further propelled this upward momentum in the crypto market.
Crypto ETFs on the Horizon
In a recent X post, Bloomberg’s Eric Balchunas, alongside James Seyffart, revealed that Bitcoin-Ethereum combo ETFs are likely to be the first to launch, followed by Hedera (HBAR). Meanwhile, Solana (SOL) and XRP ETFs may experience delays due to ongoing legal challenges with the SEC. It is anticipated that a wave of cryptocurrency ETFs will be introduced next year, although not all simultaneously. The initial offerings are expected to include Bitcoin and Ethereum combo ETFs, potentially followed by Litecoin, given its classification as a commodity, then HBAR, and finally XRP and Solana, once their legal statuses are resolved.
Optimism for new crypto ETFs has surged following President-elect Donald Trump’s nomination of Paul Atkins, a pro-crypto former SEC commissioner, to replace Gary Gensler as SEC Chair. This leadership change is likely to facilitate the approval process for a wider array of crypto ETFs in the United States. Atkins’ more lenient regulatory stance could pave the way for a diverse range of digital asset ETFs.
Spotlight on Solana and XRP ETFs
While proposals for Solana and XRP ETFs have been submitted, their approval remains uncertain until the new SEC leadership is in place in January. Bloomberg analysts predict these funds could be approved by late 2025. Nate Geraci, President of ETF Store, has expressed confidence, stating, “It’s highly likely Solana ETFs will be approved by the end of next year at the latest.”
Altcoins in Focus
Other altcoin ETFs, such as those for Litecoin (LTC) and Hedera (HBAR), could gain approval sooner due to clearer regulatory standing. Seyffart noted that neither Litecoin nor HBAR have been classified as securities by the SEC, which simplifies their path to market entry. However, he raised concerns about whether there is sufficient investor demand for these products.
Looking ahead, the number of altcoin ETF applications is expected to increase significantly in the coming months, reflecting a growing interest in diversifying crypto investment options. Issuers are optimistic about the regulatory shift, with Two Prime Digital Assets CEO Alexander Blume commenting, “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—Here’s What to Expect if the Price Marks an ATH
The market is opening doors for alternative investment options as Bitcoin reaches new heights, necessitating fresh capital inflow. ETFs have played a crucial role in shaping the market this year, and with more ETFs expected in Q1, traders have exciting opportunities to diversify their portfolios. Although analysts foresee challenges in approving XRP and Solana ETFs, strong community support for these cryptocurrencies is pushing for early approval as prices hint at 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.
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