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Coinpaprika 2025-01-13 08:41:14

Crypto ETFs to Boom in 2025: 50 Launches Predicted

Nate Geraci, president of the ETF Store and a trusted voice in the crypto ETF industry, forecasts a monumental year for crypto ETFs in 2025. He predicts that at least 50 new crypto-related ETFs will enter the market, including innovative products like covered call ETFs, Bitcoin-denominated equity ETFs, and "Bitcoin bond" ETFs. Geraci also anticipates a significant milestone: Bitcoin spot ETFs are expected to surpass physical gold ETFs in asset size , signaling the growing dominance of digital assets in mainstream investments. Geraci expects approvals for spot ETFs tied to Solana and XRP, but regulatory hurdles might delay their debut. Bloomberg analysts Eric Balchunas and James Seyffart argue that Litecoin and Hedera have better chances of SEC approval. Unlike Solana and XRP, these cryptocurrencies have not been classified as securities by the SEC. Litecoin, being a Bitcoin fork, is treated as a commodity, increasing its likelihood of earlier approval. Ethereum’s role in the ETF market is set to expand as well. Geraci predicts that spot Ethereum ETF options trading will be approved in 2025 , offering investors new ways to hedge or speculate on price movements. Additionally, both Bitcoin and Ethereum ETFs are expected to adopt in-kind redemption and creation processes, enhancing trading efficiency and liquidity for investors. The market’s expansion will be further fueled by anticipated crypto index ETFs from Bitwise and Grayscale. These products aim to make cryptocurrency investments more accessible to a broader audience. One standout is the expected launch of the Bitwise Bitcoin Standard Corporations ETF, which will focus on companies adopting the "Bitcoin standard." Geraci projects this ETF will quickly amass over $1 billion in assets, highlighting its strong potential. Vanguard, a leading asset management firm known for its commitment to traditional investments like equities and bonds, is also expected to join the crypto ETF space in 2025. According to Geraci, Vanguard’s entry will reflect a growing shift in the financial industry as more traditional firms embrace cryptocurrency products. With a proven track record—he correctly predicted the approval of Bitcoin and Ethereum ETFs—Geraci’s forecasts carry significant weight. His prediction of 50 new crypto ETFs launching in 2025 showcases the rapid evolution of digital assets into a mainstream investment class. The approval of these ETFs, particularly Bitcoin and Ethereum products, will cement the status of cryptocurrencies as an essential component of diversified investment portfolios. Bitcoin spot ETFs surpassing physical gold ETFs in size, Ethereum ETF options trading approval, and Bitwise’s $1 billion milestone ETF are poised to mark 2025 as a transformative year for the crypto ETF market. This growth underscores the increasing acceptance of digital assets as a viable alternative to traditional investments.

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