Cryptocurrency ETF Expectations for 2024

Analysts Eric Balchunas and James Seyffart from Bloomberg anticipate a significant rise in cryptocurrency-based exchange-traded funds (ETFs) available to investors next year.

> "We expect a wave of cryptocurrency ETFs next year, albeit not all at once," stated Balchunas on X.

The optimism surrounding new crypto ETFs has surged following Donald Trump’s election and Gary Gensler’s announcement of his departure as chair of the U.S. Securities and Exchange Commission (SEC). Gensler was often perceived as opposed to digital assets despite the launch of spot bitcoin ETFs that attracted considerable investment.

Seyffart predicts, "Dual bitcoin and ethereum ETFs from Hashdex, Franklin Templeton, and Bitwise will likely be among the first approved. However, Solana and XRP ETFs will have to wait for the new SEC administration for serious consideration."

Despite the applications filed for Solana and XRP ETFs, hopes for approvals before Trump assumes office are slim. Seyffart mentions that Litecoin or HBAR ETFs might get approval sooner, although he questions investor demand for these assets.

He adds, "The SEC isn’t labeling Litecoin or HBAR as securities."

Proposals for Solana and Dogecoin ETFs may emerge as early as 2025. Nate Geraci, President of ETF Store, believes it’s very likely that Solana ETFs will receive approvals by the end of next year.

Alexander Blume, CEO of Two Prime Digital Assets, agrees, asserting that issuers won’t pursue these ETFs without a strong belief in their chances of success.

In a lighter remark, Balchunas noted, "Today's satire is tomorrow's ETF," implying that unconventional assets like Dogecoin might eventually find their way into ETF offerings. He stated, "You could ask yourself, 'is DOGE a bridge too far?' and I would say we'll see. I think someone's gonna try it because why not?"