Next year, several cryptocurrencies could have their own spot ETFs in the United States, including XRP, the Cryptocurrency issued by Ripple.
Eric Balchunas, ETF specialist at Bloomberg Intelligence, affirms that expects a “wave of cryptocurrency ETFs” in 2025although he warns that “not all will be approved at the same time.” This scenario would occur after significant changes in the regulation of the cryptocurrency sector.
With the departure of Gary Gensler from the Securities and Exchange Commission (SEC) in January and the possible arrival of Paul Atkinsnominated by President-elect Donald Trump, a friendlier regulatory environment is anticipated.
Atkins, known for his support of the cryptoasset industry, could facilitate the approval of these financial productsaccording to Balchunas. This regulatory transformation aligns with Trump’s promises to reduce restrictions for the sector.
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So far, companies like WisdomTree, Bitwise, 21Shares, and Canary Funds have submitted applications to launch ETFs XRPas reported by CriptoNoticias.
Litecoin and Hedera could have their ETF
In the US market, the Bitcoin-criptomonedas-futuros-spot-mercados-riesgos/” target=”_blank” rel=”noreferrer noopener”>ETFs spot bitcoin and ether (ETH), Ethereum‘s native cryptocurrency. The next ETFs to be approved will likely be bitcoin duals and ether. Proposals from Hashdex, Franklin Templeton and Bitwise that seek to combine these two cryptoassets, indicates the specialist.
Balchunas also mentions that other products such as ETFs based on Litecoin (LTC) and Hedera (HBAR) have a good chance of being approved. The Canary Capital firm leads the proposal related to HBAR. However, The specialist recognizes that the approval of these products may not be simultaneous.
ETFs benefit the price of cryptocurrencies
Spot ETFs have a direct impact on the price of the underlying cryptocurrencies. The management companies of these financial instruments must acquire and maintain digital assets in their treasuries. to support the issued shares. If there is a high demand for these products, firms need to buy more cryptocurrencies in the market.
This movement increases the demand for crypto assets, which in turn raises its price by simple law of supply and demand. Additionally, the participation of large banks and corporate investors in these ETFs reflects growing institutional interest in cryptocurrencies. The influx of institutional capital not only injects large sums of money into the market, but also strengthens confidence in these assets as a legitimate and valuable option.
The approval of ETFs for XRP and other cryptocurrencies could mark a milestone in the development of the sector. With more flexible regulation and the involvement of institutional players, the market could experience significant changes in the coming years.
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