Uncovering the future trend of crypto ETFs

Remember the excitement when the first Bitcoin ETFs came out in early 2024? In less than a year, these ETFs have absorbed more than 5% of Bitcoin supply, and the Ethereum ETF launched in July has quickly accumulated $2.6 billion in assets under management.

So which cryptocurrency ETFs will be approved next year? Here’s what you might want to know.

• Current ETF Market Conditions

• Can Solana ETF break through?

• Can the emergence of a new government mark a turning point?

• Exploring new opportunities

• Trends in the ETF Market

1. From Bitcoin to Ethereum, laying the foundation for the market

The success of Bitcoin ETFs is clear. The 11 US Bitcoin ETFs not only absorb more than 5% of Bitcoin supply, but also promote the maturity of market structure, including custody services, compliance processes, and the depth of participation of retail and institutional investors.

Ethereum ETF also performed well. As the world's second largest cryptocurrency by market value, Ethereum has a wide range of uses in smart contracts and decentralized applications, which has rapidly made its ETF popular in the market. Bitcoin and Ethereum are the starting point for most investors to enter the crypto ETF market, but more assets will enter this blue ocean in the future.

2. Can Solana ETF break the deadlock?

1. Current Status of Solana ETF

Whether Solana can become the next star ETF is one of the hot topics in 2025. This emerging public chain has attracted a large number of developers and users with its high speed, low cost and decentralized features. However, its ETF road still faces challenges. At present, the only feasible path to launch Solana spot ETF is to launch a futures ETF first to pave the way for spot products. But even if the futures ETF is approved, it will take time to accumulate transaction records to lay the foundation for future spot ETFs.

2. The greater obstacle comes from the regulatory level

In 2023, the SEC listed Solana as one of 19 unregistered securities when suing Binance and Coinbase, which made its compliance controversial. In contrast, Bitcoin and Ethereum are easier for the SEC to monitor because their futures trading is conducted on the regulated Chicago Mercantile Exchange, which is a key reason for the rapid approval of their ETFs.

3. With the new government in place, will regulatory policy reach a turning point?

In January 2025, the United States will usher in a new government. The Trump administration appointed Paul Atkins, a long-time supporter of cryptocurrencies, as chairman of the SEC, a change that is seen as a major boon to the crypto market. Anchorage Digital CEO Nathan McCauley believes that the new government will focus on the following areas:

1. Stablecoin regulation: may push for bills to clarify the legal status of stablecoins.

2. Innovation support: Accelerate support for technological innovation related to blockchain and digital assets.

3. Strategic Reserve: Explore the establishment of a national Bitcoin reserve to strengthen the United States’ position in the digital economy.

4. Exploration of new opportunities: more crypto asset ETFs are ready to go

In addition to $SOL, $HBAR and $XRP are also on the potential list for 2025. $HBAR is considered an ideal choice for institutional investors due to its unique technical architecture and institutional partnerships. Although $XRP has strong community support, its centralization issues and legal disputes are still obstacles that cannot be ignored. $DOGE has performed well in the market over the past year, but it will take time to see whether it can attract enough institutional interest.

The following figure is the spot cryptocurrency ETF filing list on December 3, 2024

5. The general trend of the ETF market

As more traditional financial institutions enter the market, capital inflows into the ETF market will continue to grow. In 2024, Bitcoin ETFs attracted more than $30 billion in inflows, and this figure may rise further in 2025.

Future Ethereum ETFs may include a staking income function to provide investors with higher returns, which will become a highlight of the market. At the same time, the improvement of the regulatory environment and the deep integration of traditional finance and the crypto market will pave the way for more innovative ETF products.

VI. Conclusion

In 2025, the crypto ETF market will usher in a new battlefield. From policy dividends to asset innovation, various possibilities are brewing. After Bitcoin and Ethereum, who will become the next star? Can Solana break through successfully? These answers will be revealed next year.