Bloomberg analysts predict a surge in cryptocurrency exchange-traded funds (ETFs) in 2025, with Litecoin (LTC) and Hedera (HBAR) ETFs potentially leading the next wave of approvals as the SEC leadership transitions.

Crypto ETFs on the Horizon

2025: A year of regulatory shifts and new opportunities

Following the approval of Bitcoin and Ethereum ETFs in 2024, analysts Eric Balchunas and James Seyffart anticipate the introduction of more crypto ETFs next year. Their outlook is tied to the impending departure of SEC Chair Gary Gensler, expected in January, and the pro-crypto stance of the incoming administration.

Balchunas shared on X:
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once.”

Potential Contenders: Litecoin and Hedera

https://x.com/EricBalchunas/status/1869064627591496170?mx=2

Why LTC and HBAR could lead the next wave

The analysts suggest Litecoin and Hedera ETFs might gain approval sooner than others due to their classification as commodities, not securities, under current regulations.

Balchunas explained:
“The most likely sequence of events is ‘btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security).’”

In contrast, Solana and XRP ETFs face delays due to ongoing legal battles over their classification as securities.

Challenges and Opportunities

Will niche ETFs gain traction?

Despite the optimism, Seyffart questioned whether niche ETFs, such as those focused on Litecoin or Hedera, would attract significant investor interest. Unlike Bitcoin and Ethereum, these assets may not have the same broad appeal or institutional backing.

Regulatory Landscape

Leadership changes and their impact

The anticipated departure of Gary Gensler, often criticized for his cautious stance on crypto, could pave the way for a more crypto-friendly SEC. This shift is expected to accelerate the approval of additional digital asset investment products.

What’s Next for Crypto ETFs?

Expanding beyond Bitcoin and Ethereum

With 2025 shaping up to be a pivotal year for crypto ETFs, the market could see greater diversification and accessibility. Whether niche funds like HBAR and LTC ETFs gain traction remains uncertain, but their approval would mark another milestone in crypto’s integration into mainstream finance.