Asset managers seek ETF tracking for top-traded crypto for 2025

The Securities and Exchange Commission (SEC) has received numerous S-1 submissions for crypto exchange-traded funds (ETFs) in the second half of 2024. This is following the success of Bitcoin (BTC) ETF but the same offering for Ethereum is still under observation. Nevertheless, the floodgates have been opened for the dollar to flow in the crypto space.

All of the S-1 forms submitted this year are in preparation for speculations in 2025. Many experts believe that many more digital assets will surge in price and trade volume, increasing their likelihood of being approved. Investors in the United States (US) demand to be a part of this bullish prediction, pushing the SEC to consider approving assets beyond BTC and ETH.

A quick update on crypto ETF trading before 2024 ends

2024 started with a bang when the SEC approved 11 firms to offer ETFs for Bitcoin (BTC). That was declared on the 10th of January and the effects on the market weren’t immediate. The prices were stable until BTC had a noticeable surge in mid-February.

Fast forward to today, and BTC has reached a new all-time high of more than $99,000 in November 2024. This is a staggering size but expected in the crypto market after the SEC opened the floodgates for the United States dollar (USD). Bitcoin traders, hodlers, and Bitcasino bettors saw this exciting news and enjoyed their new wealth.

It marks the new age for crypto trading and investors want to see the same bullish trend on other digital assets. The blockchain community has named several cryptocurrencies they want to invest in ETF tracking and Ethereum was next in line. It successfully entered the ETF space on 23 July 2024 and the price surge began in November.

When looking at the market prices, ETH is still far from overcoming its all-time high in 2021. It has stabilised between $2,500 to $3,400 with signs of upward swings heading into 2025. This seems unimpressive but the ETH ETF has driven an inflow of over $650,000,000.

The top contributors to BTC and ETH ETF success

The original 11 firms that the SEC approved to offer BTC ETF on 10th January were transformative to the crypto market as a whole. Each one is credited for their foundational role in Bitcoin’s new all-time high as well as the growing interest in altcoins. Here are the top contributors to the floodgates being opened for USD to inflow decentralised finance (DeFi):

• BlackRock

BlackRock offers its iShares Bitcoin Trust ETF (IBIT) on the Nasdaq on 19th November 2024. The offering saw a surprising $1,900,000,000 inflow in national exposure. That was its success on its first day, gathering a record-breaking 354,000 contracts.

That was separate from the iShares Bitcoin ETF (IBIT.IO), the investor offering for spot trading performance tracking. It reached over $30,000,000,000 near the end of October and over $40,000,000,000 in the 2nd week of November.

Meanwhile, BlackRock also just recently launched the iShares Ethereum Trust ETF (ETHA) in July, which hit the $1,000,000,000 mark within a few weeks after its debut. It’s underwhelming compared to IBTI but it’s strong when compared to other ETH offerings overall.

• Grayscale

Grayscale was among the first firms to have faith in BTC having launched the Bitcoin Trust (GBTC) in 2013. The offering and its funds were converted into an ETF in January 2024 as soon as it got approval from the SEC. From there, it has accumulated net assets of $15,410,000,000 as of November 2024 with a $5,730,000 daily volume in shares.

The Grayscale Ethereum Trust ETF (ETHE) isn’t a direct investment in Ethereum. Instead, it’s a passive entity deriving value from the potential of the network and its projects. The Trust has accumulated over $4,000,000,000 in net assets.

The true contribution Grayscale has provided to crypto investors is one of setting the precedent by a lawsuit with the SEC. This paved the way to the current state of the regulatory landscape which is now being further changed in favour of the crypto investors moving forward.

• Fidelity

Fidelity offers exchange-traded products (ETP) for Bitcoin (FBTC) and Ethereum (FETH) tracking their spot trading performance on the market. Their scope is much smaller as they focus on the broader adoption of crypto in retail and institutional clients. Fidelity has amassed over $916,600,000 and $440,000,000 in net assets for FBTC and FETH respectively.

Despite being short of a billion unlike the other two, Fidelity remains at the forefront of the crypto ETP offerings. They are the leader in bridging crypto and traditional finance, creating opportunities for better adoption. What Fidelity has accomplished lays the foundation for future crypto ETF offerings to earn more demands.

The most in-demand crypto for ETF tracking

Now that BTC and ETH ETFs exist, investors have become more excited to look into other digital assets. Some of the most mentioned assets include Ripple (XRP), Solana (SOL), Litecoin (LTC), and Hedera (HBAR). There are many others like Dogecoin (DOGE) and Polygon (POL) but these four are at the top of every finance management firm’s watchlist.

Find out why they are so popular for ETF offering proposals:

Ripple (XRP): add title to be more marketing

Ripple has a headway in the finance sector for being beneficial for both crypto- and banking-related businesses. It was launched in 2012 by founders Chris Larsen and Jed McCaleb as a platform for low-cost international money transfers and currency exchanges.

Thanks to the Ripple network, the majority of modern banking’s remittance, conversion, and loan services were made more cost-effective with cross-border applications. It’s expected to see more demand as crypto becomes even more adopted into the finance sector, making it the centre of bullish speculation among experts.

Here are the top firms who filed for XRP ETF offerings likely to be approved in 2025:

• Bitwise: Despite being the first to file for a spot trading ETF for XRP on 2nd October 2024, Bitwise has not openly disclosed the details of the product. It is only one of the first that the company aims to have in its portfolio for 2025. Potential exchanges where this can drop are the New York Stock Exchange (NYSE) and the Cboe BZX Exchange.

• 21 Shares: The proposal was filed on 1st November 2024 with intentions of trading it on the Cboe BZX Exchange. Coinbase Custody Trust Company is the declared custodian for the digital assets. 21Shares declared that this offering will be 100% backed by XRP at all times, instead of being an assortment of spot-traded assets.

• Canary Capital Group: The firm is new to the crypto space and the XRP ETF offering is one of many that they filed for on 8th October 2024. For the most part, Canary is following Bitwise’s footsteps and plans.

Solana (SOL)

Solana is a platform designed to support decentralised applications (dApps) and crypto projects using smart contract technology. If that sounds familiar to you, that’s because it’s similar to an already successful crypto with an ETF, and it’s Ethereum (ETH). Co-founders Anatoly Yakovenko and Raj Gokal launched Solana in 2020 under Solana Labs as a competitor.

Applications for SOL are also similar to ETH in many ways. It’s the primary utility token on its network and it’s also used in trades and payment for services, including a Bitcasino deposit. SOL is also popular for loans and swapping on Solana’s platform built for decentralised finance (DiFi).

SOL can be traded regularly on decentralised exchanges (DEX) built in its own network but it’s also circulating third-party brokerages. The same is true for its supported blockchains minting other altcoins, non-fungible tokens (NFTs), and stablecoins alike. It’s an especially crucial ecosystem in Web 3.0 development, the speculated next stage for the internet.

Learn more about the top ETF offerings for Solana from these firms:

• VanEck: The firm filed for SOL ETF on 21st June 2024, making them the first to do so for Solana. VanEck signals that SOL should be treated as a commodity given its functions and applications. No details were provided yet like the ticker or its focus other than its arrival on the Cboe BZX Exchange.

• 21Shares: This company filed for SOL ETF on 28th June 2024 with full confidence that it will become accepted because it is not a security. Its speculation was made more plausible with Ethereum’s acceptance into the ETF offering the following month on 23rd July. 21Shares plans to offer the SOL ETF on the Cboe BZX Exchange if it’s approved.

• Bitwise: Filing for SOL ETF took Bitwise a lot longer than the other two because they submitted their S-1 registration on 21st November 2024. The listing will be on the Cboe BZX Exchange if the SEC approves it. No details for the offering were provided yet other than its potential listing.

Litecoin (LTC)

If Solana reminds you of Ethereum, then you’ll find that Litecoin (LTC) is similar to Bitcoin. The network was a hard fork from the most valuable blockchain worldwide. Rather than competing for the same market, founder Charlie Lee launched Litecoin in 2011 as a complement to Bitcoin. It became one of the earliest ‘altcoins’ in history with a strong economy today.

Litecoin was a big improvement to Bitcoin in many ways for users. It has lower fees, a higher more user-friendly network, and faster transaction speed than the original cryptocurrency. However, it is not as valuable due to its higher supply limit and lower demand than the BTC.

What makes Litecoin stand out as the centre of ETF offerings is its complementary relationship with Bitcoin. LTC is already a diversification tool within a crypto portfolio for many users and it stands as a strong addition to Bitcoin and Ethereum ETFs. The asset and its platform also work similarly to Bitcoin, allowing regulators to apply the same ruling to BTC.

Find out more about the Litecoin ETF offerings filed by these firms:

• VanEck: The target listing is on Cboe BZX Exchange following their established broad plant or crypto ETF initiatives filed on 11th August 2024. It will be a spot trading ETF to give investors indirect exposure to crypto trading like BTC and ETH. The ETF is a regulated fund that tracks LTC price performance directly.

• Canary Capital Group: The firm filed its S-1 for spot LTC ETF on 15th October 2024 with Coinbase Custody as the asset storage provider. Canary is tracking LTC market performances through CoinMarketCap data and the ETF will be listed on the Cboe BZX Exchange.

Hedera (HBAR)

Hedera isn’t based on a blockchain but a decentralised ledger technology (DLT) called Hashgraph. It’s a consensus system on the direct acrylic graph (DAG) that was launched in September 2019 and founded by Dr Leemon Baird. He founded Hedera together with Mance Hamon and Paul Madsen to complete the network.

Though the platform and its systems are different from the blockchain, Hedera (HBAR) is a cryptocurrency with similar functions as Bitcoin and Ethereum. It can support the development of dApps, host smart contract services, and provide a platform for a variety of DeFi projects.

HBAR is the native crypto serving as the main utility token for the Hedera Hashgraph. It’s used to pay service fees, contribute to the network’s security, and give leverage to token holders’ votes in governance. Hedera’s most promising qualities revolve around its innovative solutions to energy efficiency and platforms for enterprises that gave it a high demand for ETF offerings.

• Canary Capital Group: The only firm that has submitted an S-1 form for Hedera is Canary on 14th November 2024. It is to be a spot trading performance ETF tracking the asset’s market price from CoinDesk’s financial data service. This is a move following Canary’s launching of the HBAR Trust, the first HBAR investment vehicle in the US.

The US anticipates crypto rally under President Trump’s term

What makes 2025 an exciting year is its change in leadership. President Joe Biden is turning over the presidency towards Former US president Donald J. Trump following his victory in the November 2024 elections. Here are some of the most highly-anticipated developments in the coming administration:

SEC Chair Gary Gensler to be replaced

The biggest proposed development in the coming 2025 is SEC Chair Gary Gensler stepping down from the Commission. It is effective immediately upon President Trump’s inauguration on 20th January 2025, overriding his duty that was meant to last until 2026.

The plan is to replace Gensler with a more crypto-friendly head to speed up investors’ involvement in the digital asset market. President Trump declared that his administration plans to provide a clearer regulatory framework supporting innovations in DeFi. Among the most favoured sections are stablecoins and altcoins.

Focus on the US’ financial dominance through Bitcoin

Coinbase has reported that investors have spent more than $119,000,000 supporting pro-crypto congressional candidates. Most of them have won their races across different states. One of the most noteworthy victories was for Bernie Moreno, a Republican candidate running for congressman against crypto-sceptic Sherrod Brown in Ohio.

Head of US policy at Coinbase, Kara Calvert, confirmed that this is the most pro-crypto congress in history. It's a promising state of the US government for President Trump’s pursuit of removing negative pressure on crypto relationships from bank regulators.

President Trump plans to establish a crypto advisory council to oversee policies. It should help Congress in working towards creating a Strategic Bitcoin Reserve which the president-elect has championed in his electoral campaign.

How the Strategic Bitcoin Reserve works is similar to the creation of gold reserves. Essentially, the government seeks to diversify its assets by allocating funds and converting them to BTC.

Pennsylvania representative Mike Caben proposed that the state allocate $7,000,000,000 to BTC to increase initial exposure from 1% to 10%. Satoshi Act Fund founder Dennis Porter proposed a similar movement in Texas.

Federal agencies need to work together to realise a crypto-friendly future

The SEC is always going to be a major player in creating regulatory frameworks to ultimately help with future crypto projects. They also need to work with the Commodity Futures Trading Commission (CFTC) provided that the US always see crypto as commodities. Add the Treasury into the mix and the three agencies are the most impactful entities in streamlining enforcement.

All three agencies shall work with the proposed crypto advisory council to represent a shift in the government’s approach to the finance sector. The United States missed too many opportunities and is only now driving the crypto industry towards the future it was always meant to reach. With the United States dollar (USD) flowing into the market, exponential growth is expected in BTC.

What else can crypto traders look forward to in 2025?

What’s next for the crypto market depends on President Donald Trump’s new regime. The government is already largely Republican with pro-crypto sentiment and the SEC should be more agreeable with exchanges’ demands. Crypto users can rejoice over the rapid development in tokenization and investment products, further bolstering the industry’s profitability.

The optimism over Bitcoin forecasts an expected push above $100,000 before the year ends or within the first few weeks of 2025. It was already impressive that it reached as far as $99,100 on 21st November 2024 but more is to be expected as more investors are exposed to the digital asset sector. The approval of more crypto ETFs can help realise this vision.

Possible challenges on the horizon

However, there are still a few hurdles President Trump’s regime has to prepare for. Even if the SEC is led by a new pro-crypto chair, the development of a new regulatory framework can still take a long time. This is especially crucial given that the new chair needs to review past rejections as precedent for future decisions.

The only fact the new SEC and CFTC can leverage in favour of faster crypto ETF approval is the success behind Bitcoin ETF, Ethereum ETF, and blockchain ETF. Bullish trends in the reviewed digital assets can also help with XRP’s increasing adoption rate.

However, assets like LTC and HBAR have shown slower growth than XRP or SOL. They’re far from reaching their all-time high and forecasts aren’t confident that they can reach new heights in the first 2 quarters of 2025. The SEC can consider this to reject or delay the approval for their spot trading ETFs in favour of the more bullish commodities.

The market is bullish for crypto in general

Should LTC or HBAR fall short of expectations, there are other cryptos on many exchange’s watchlists. The most popular of which is the Dogecoin (DOGE), which has a volatile property that follows Bitcoin's trends. If approved, then the DOGE ETF can grow ever more popular and could be the prime consumer-traded cryptocurrency worldwide.

However, DOGE faces the same concerns that limit LTC’s chances for approval and that is its slow uptrend. Granted, the asset has seen a big increase in market price, jumping from $0.16 to $0.43 between 2nd to 23rd November. The asset has plateaued since then and is still far from the $1.00 target.

What makes it appealing is the investors’ demand for a secure consumer-traded asset and DOGE is the best to fill that void. If approved, then traded prices are likely to stabilise at around $0.50 and provide users with better regulations for any online purchase or Bitcasino deposit.

The future looks bright for crypto in the United States

The US finally has the most pro-crypto government in its history. It is a surprising development because President Trump was one of the most vocal sceptics of the assets in his 2019 presidency. The stance he took then was due to his focus on US dollar supremacy as the economic driving force for the country.

There are still plenty of factors to consider when looking into crypto ETFs but the new administration has them covered. The world eagerly awaits how the US will handle the growing market and demands as well as how to sustain trade activities. Should it show the same bullish trend as Bitcoin ETF, then the US will be the first to cement crypto as the standard of finance.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.