A senior Bloomberg ETF analyst predicts an explosive cryptocurrency market ahead, driven by the potential approval of multiple altcoin exchange-traded funds (ETFs) in the coming years.
Eric Balchunas, Bloomberg's senior ETF analyst, revealed that 14 altcoin-related ETFs are currently awaiting approval from the U.S. Securities and Exchange Commission (SEC) over the next 12 months. These funds would provide exposure to various cryptocurrencies including Solana, XRP, Hedera, Litecoin, and combined Bitcoin-Ethereum products.
The analyst expects the number of altcoin ETF applications to triple within the next two months, setting the stage for what he describes as a "pretty wild" market by 2025, barring any major market collapse.
The cryptocurrency ETF landscape has seen increased activity following recent political developments. ETF Store CEO Nate Geraci noted that multiple asset managers are preparing for new listings, with three new ETF registrations filed in November alone.
Among recent developments, Canary Capital submitted an application for a Hedera (HBAR) ETF, while Bitwise registered a Solana trust and filed for a mixed Bitcoin-Ethereum ETF with the NYSE.
Bloomberg ETF analyst James Seyffart projects that Solana-related ETFs could receive approval within two years, though he cautioned that the current administration might reject these applications, as demonstrated by the removal of VanEck and 21Shares' Solana ETF filings in August.
Litecoin ETFs may face better prospects for approval, according to industry experts. Galaxy Digital's head of research Alex Thorn points to Litecoin's fair launch, which involved no pre-mine or token sale, as a favorable factor in regulatory considerations.
The potential wave of altcoin ETF approvals could mark a new chapter in cryptocurrency investment accessibility, offering traditional investors regulated exposure to a broader range of digital assets beyond Bitcoin and Ethereum.