HBAR ETF on the Horizon? Analysts Predict Surge in Crypto ETFs in 2025

s the cryptocurrency market continues to evolve, analysts are forecasting a surge in cryptocurrency exchange-traded funds (ETFs) in 2025. Following the recent approval of Bitcoin and Ethereum ETFs, the spotlight is now shifting to the next wave of digital asset ETFs. According to Bloomberg analysts Eric Balchunas and James Seyffart, the upcoming year could see a significant increase in crypto ETF offerings.

A Wave of Crypto ETFs Expected

Balchunas and Seyffart shared their predictions on X, highlighting the growing optimism surrounding the launch of new cryptocurrency ETFs. With a potential leadership shift at the U.S. Securities and Exchange Commission (SEC), the analysts foresee a more favorable environment for crypto ETF approvals in 2025. SEC Chair Gary Gensler, who has faced criticism for his cautious approach to crypto regulation, is expected to depart in January, following the anticipated election victory of Donald Trump. This change in leadership could pave the way for a more crypto-friendly SEC.

“We expect a wave of cryptocurrency ETFs next year, albeit not all at once,” Balchunas commented, signaling the potential for accelerated growth in the sector.

What’s Next for Crypto ETFs? HBAR and Litecoin in the Mix

The analysts suggest that the first wave of crypto ETFs in 2025 will likely feature combined Bitcoin and Ethereum ETFs, with firms such as Hashdex, Franklin Templeton, and Bitwise at the forefront. These ETFs are expected to lead the market, building on the success of existing Bitcoin and Ethereum products.

Seyffart also pointed to the possibility of Litecoin (LTC) and Hedera (HBAR) ETFs following closely behind, given their classification as commodities and the absence of regulatory challenges regarding their status as securities.

Balchunas highlighted that the most likely sequence of ETF launches could be a combined Bitcoin and Ethereum ETF, followed by Litecoin, given that it is a Bitcoin fork and considered a commodity. Hedera, according to the analysts, would come next, as it has not been classified as a security by regulators.

Challenges for Solana and XRP ETFs

While Litecoin and Hedera ETFs seem promising, other assets like Solana (SOL) and XRP (XRP) face significant hurdles. Both are embroiled in ongoing legal battles over their classification as securities, which could delay the approval of ETFs linked to these digital assets. The resolution of these legal issues is likely to take time, especially with the anticipated changes at the SEC.

Despite the potential for Litecoin and Hedera ETFs, Seyffart raised concerns about whether these niche funds would attract substantial investor demand. As the market matures, it remains to be seen how much interest these specific crypto ETFs would garner compared to Bitcoin and Ethereum products.

Conclusion: The Future of Crypto ETFs

As the regulatory landscape shifts in 2025, the launch of new cryptocurrency ETFs could mark a significant milestone for digital asset investment. With the departure of SEC Chair Gary Gensler, the market may see more crypto ETFs approved, including those for Litecoin and Hedera, with other assets like Solana and XRP facing regulatory hurdles. The evolution of crypto ETFs will be an important development to watch in the coming year, as investors look for new opportunities to diversify their portfolios in the digital asset space.