Exchange-traded fund (ETF) providers are preparing to introduce new crypto-centric funds in 2025. This move follows the remarkable success of crypto ETFs launched in 2024.
Increased ETF Filings Expected
Bloomberg Intelligence analyst Athanasios Psarofagis anticipates a significant rise in ETF-related filings this year. “This marks the continued evolution of incorporating crypto strategies into ETFs,” Psarofagis remarked, referencing the approval of Bitcoin and Ethereum spot ETFs in 2024.
SEC Approval Sparks Momentum
The US Securities and Exchange Commission (SEC) approved its first crypto ETFs—spot Bitcoin products—in January 2024. By July, the regulator had also sanctioned multiple spot Ether ETFs, solidifying the presence of crypto in the ETF market.
Trump’s Pro-Crypto Policies Boost Market
Cryptocurrencies experienced substantial price increases in late 2024. Bitcoin, for instance, surged past $100,000 on December 5, fueled by favorable conditions, including pro-crypto policies under Trump’s administration. “It’s a hot trend, and issuers are eager to capitalize on the momentum,” Psarofagis added, predicting a wave of crypto-themed ETFs.
Innovative Crypto-Centric Fund Proposals
ETF issuers have filed several innovative crypto-focused products with the SEC. These funds, some considered high-risk, aim to attract more investors to the crypto space. Bloomberg reported notable proposals, including:
- ProShares’ fund denominating S&P 500 returns in Bitcoin.
- Strive Asset Management and REX Shares’ offerings involving convertible bonds and derivatives.
- Volatility Shares’ proposed Solana fund and a vehicle tracking the token through futures contracts.
If approved, these filings could result in over a dozen new crypto ETFs launching in 2025.
BlackRock and MicroStrategy Lead the Way
The filings arrive amid the success of BlackRock’s iShares Bitcoin Trust (IBIT), which achieved record-breaking performance last year. Additionally, MicroStrategy co-founder Michael Saylor capitalized on rising Bitcoin prices by bolstering his company’s reserves.
Expanding the Crypto ETF Spectrum
Todd Sohn, ETF strategist at Strategas, highlighted the growing diversity in the crypto ETF space. “We are witnessing the evolution of the crypto ETF spectrum, from futures-based and spot ETFs to thematic and convertible offerings. These developments cater to both hyper-specific needs, such as MicroStrategy’s strategy, and broader market interests,” Sohn noted.
The surge in filings and innovative approaches underscore the growing confidence in the crypto market as ETF providers gear up for 2025.
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