Crypto-Focused ETFs ‘The Hot Thing’ in 2025

More than a dozen new cryptocurrency-focused exchange-traded funds (ETFs) reportedly could be launched in 2025, if they’re approved by the Securities and Exchange Commission.

ETF companies have submitted that many filings with the SEC, Bloomberg reported Thursday (Jan. 2).

The proposed products described in the filings include a ProShares ETF that would denominate the S&P 500’s return in bitcoin; Strive Asset Management and REX Shares funds that would offer exposure to convertible bonds issued by companies to buy bitcoin; and Volatility Shares inverse and leveraged Solana funds, according to the report.

Bloomberg Intelligence’s Athanasios Psarofagis said in the report that these filings show “the continued evolution of launches to incorporate crypto strategies into ETFs.”

“We’ll see a lot of these in 2025,” Psarofagis said, per the report. “It’s the hot thing — issuers love to strike when the theme is hot. We’ll see crypto everything.”

The report came about a year after the SEC approved bitcoin ETFs following years of opposition to doing so.

SEC Chairman Gary Gensler said at the time in a statement that the SEC’s approval applies only to bitcoin and should not be seen as an indication that the regulator is ready to approve other listed securities.

“While we approved the listing and trading of certain spot bitcoin ETP shares today, we did not approve or endorse bitcoin,” Gensler said. “Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”

The approval was heralded by figures throughout the cryptocurrency sector.

Sui Chung, CEO of Kraken-owned CF Benchmarks, told PYMNTS in a statement posted Jan. 11, 2024: “A spot ETF has always been important because it stands to open bitcoin up to a much broader swathe of investors. We look forward to working with asset-allocators as they incorporate this new asset class into their portfolios and models, significantly increasing the number of investors who could have BTC exposure.”

President-elect Donald Trump’s win in November sparked a crypto rally because Trump is seen as a more crypto-friendly candidate, standing in contrast to President Joe Biden’s efforts to crack down on the industry following some high-profile scandals.