From my perspective as an analyst, unlike the beginning of 2024 when the crypto market experienced the introduction of bitcoin ETFs fueling the Q1 bull run, the first quarter of 2025 appears to be devoid of such ETF launches. Given the significant volatility in Bitcoin prices and the altcoin market this year, the pursuit of stability is more crucial than ever before.
For the coming year, there’s a general expectation that the market will be bullish in 2025. However, the short-term instability suggests a bearish trend for a couple of weeks. Looking ahead, the next few quarters could trigger an influx of new crypto ETFs. The inauguration of Donald Trump as the U.S. President might be a significant catalyst for this surge.
Solana and XRP Crypto ETFs: Top Contenders for 2025 Approval
According to a recent Reuters report, it seems that we can anticipate more cryptocurrency Exchange-Traded Funds (ETFs) in the United States soon. As the Trump administration takes office on January 20th, the crypto market is optimistic about potential regulatory relaxation, which could stimulate greater adoption of cryptocurrencies.
It’s expected that the release of various alternative cryptocurrencies could see significant price increases. By the year 2024, a number of firms such as VanEck, 21Shares, and Canary Capital have submitted approximately 16 applications to introduce exchange-traded funds (ETFs) for Solana and XRP.
Among all cryptocurrencies, Solana and XRP rank fourth and sixth respectively, when measured by their total market value.
Paul Atkins and the Future of Crypto Regulation
As a researcher, I’m adding my perspective on the potential approval of crypto ETFs in 2025: The Trump administration has announced a change at the helm of the Securities and Exchange Commission (SEC). Paul Atkins, selected by Donald Trump, is set to take over from Gary Gensler as chairman. This transition may influence the SEC’s stance on crypto ETFs in the coming year.
Atkins is a well-respected advocate for digital assets, expected to spur growth in the cryptocurrency market by advocating for simpler regulations. As acceptance grows, investment firm Canary Capital plans to introduce ETFs based on Litecoin and Hedera crypto, which are less commonly owned compared to Bitcoin and other popular altcoins.
BlackRock and Grayscale Dominate the US Crypto ETF Landscape
Last year, the launch of Bitcoin and Ethereum Exchange Traded Funds (ETFs) in the U.S. led to a substantial increase in market demand. These U.S. crypto ETFs have accumulated over $100 billion in Bitcoin and approximately $10 billion in Ethereum.
Following the draining of approximately $582.90 million on January 8, the combined net value of U.S.-based Bitcoin Exchange-Traded Funds now stands at about $106.82 billion.
Among the 12 Bitcoin Exchange-Traded Funds (ETFs), BlackRock’s IBIT currently holds the greatest amount of net assets at approximately $52.46 billion. Fidelity follows closely behind with around $19.32 billion in Bitcoin holdings, while Grayscale is the third largest U.S. spot Bitcoin ETF with roughly $19.19 billion in net assets.
Ever since the introduction of the U.S. spot Bitcoin ETF, I’ve noticed a staggering accumulation of funds. As of now, the combined total net investment into these Bitcoin ETFs has reached an impressive $36.37 billion.
On January 8th, US-listed Ethereum spot ETFs experienced a net outflow of approximately $159 million. The combined total inflow for these ETFs now amounts to around $2.52 billion. It’s also worth noting that the overall assets in Ether crypto ETFs are currently valued at $11.74 billion. Among the nine Ethereum ETFs available, Grayscale’s Ethereum Trust holds the largest portion with about $4.61 billion in assets, followed by BlackRock with $3.68 billion and Grayscale’s Minitrust with $1.55 billion.
2025 might bring about a revolutionary surge in crypto adoption with a fresh administration and numerous ETF applications underway. Although short-term market fluctuations could pose difficulties, a more relaxed regulatory environment and an increase in ETF options for cryptocurrencies such as Solana and XRP could lead to a robust recovery and pave the way for sustained growth over the long term.
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2025-01-10 20:18