Amid the changing US government and the impressive performance of BTC and Ether ETF in 2024, will 2025 witness new crypto ETFs?
Unlike the start of 2024, when the crypto market witnessed the launch of bitcoin ETFs driving the Q1 bull run, the first quarter of 2025 is unlikely to see any crypto ETF releases. 2025 comes with massive fluctuations in the Bitcoin prices and the altcoin market, the need for stability is more than ever.
While the broader market anticipates 2025 to be a bullish year, the short-term volatility hints at a bearish pathway for a few weeks. That said, the upcoming quarters are likely to drive a new wave of crypto ETFs. The swearing-in ceremony of Donald Trump as the new US President will likely drive this wave.
Based on a recent report by Reuters, the next wave of crypto ETFs in the United States is already in the pipeline. With the Trump administration starting from January 20, the crypto market is expecting regulatory easing to boost the crypto adoption.
The launch of other altcoins is likely to witness massive gains. By the end of 2024, multiple companies, VanEck, 21Shares, and Canary Capital, have filed nearly 16 applications to launch exchange-traded products of Solana and XRP.
Solana and XRP are the top 4th and 6th largest cryptocurrencies based on their market capitalization.
Adding to the chances of crypto ETFs getting approved in 2025, the Trump administration is replacing the chairman of the SEC. Paul Atkins, the choice of Donald Trump, is going to succeed Gary Gensler.
Atkins is a widely known supporter of digital assets and is anticipated to drive the crypto rally with easier regulations. Amid increasing approval chances, Canary Capital is on the lookout to launch Litecoin and Hedera crypto ETFs. These are less widely held compared to Bitcoin and other top altcoins.
Bitcoin and Ethereum ETFs launched last year managed to boost the demand in the US market significantly. The US crypto ETFs have acquired more than $100 billion worth of Bitcoin and $10 billion worth of Ethereum.
After the recent outflow of $582.90 million on January 8, the US spot Bitcoin ETFs have a total net asset of $106.82 billion.
Out of the 12 Bitcoin ETFs, the largest remains BlackRock’s IBIT with $52.46 billion of net assets. Fidelity comes second with $19.32 billion worth of BTC holdings. Grayscale remains the third largest US spot Bitcoin ETF with $19.19 billion of net assets.
Since the launch of the ETF, the cumulative total net inflow of the US spot Bitcoin ETFs stands at $36.37 billion.
On January 8, the US Ethereum spot ETFs also registered a net outflow of $159.34 million. The cumulative total net inflow of Ethereum ETFs stands at $2.52 billion. Furthermore, the Ether crypto ETFs have a total net assets of $11.74 billion. Out of the nine Ethereum ETFs, Grayscale’s Ethereum Trust comes as the largest with $4.61 billion net assets, followed by BlackRock holding $3.68 billion and Grayscale’s Minitrust with $1.55 billion.
With a new administration and significant ETF applications in the pipeline, 2025 could witness a transformative wave of crypto adoption. While short-term volatility poses challenges, regulatory easing and expanding ETFs for altcoins like Solana and XRP may fuel a strong recovery and set the stage for long-term growth.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Bitcoin ETF News, Solana (SOL) News, Cryptocurrency News, News
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
