HBAR ETF Will Launch Before XRP and SOL in 2025, Predicts Bloomberg Analyst
2024-12-18
Crypto exchange-traded funds (ETFs) are expected to dominate the market in 2025, but not all tokens will be part of the first wave.
According to Bloomberg senior ETF analyst Eric Balchunas, HBAR ETFs are likely to gain approval before XRP and Solana (SOL) ETFs. This prediction follows a year of significant progress in the ETF landscape with the approval of Bitcoin and Ethereum ETFs.
What Sets HBAR Apart?
Eric Balchunas explained in his latest analysis that HBAR (Hedera) holds a key regulatory edge over its competitors.
Unlike XRP and Solana, which face ongoing legal battles over their classification as securities, HBAR has not been labelled a security by regulators. This distinction allows HBAR to bypass many of the regulatory hurdles slowing down other crypto ETFs.
Balchunas outlined the expected timeline, saying:
“We expect a wave of cryptocurrency ETFs next year… first BTC + ETH combo ETFs, then probably Litecoin, followed by HBAR. XRP and Solana will likely come later due to legal issues.”
The simplicity of HBAR’s regulatory status gives it a head start, making it a prime candidate for approval in 2025.
XRP and SOL ETFs Face Legal Roadblocks
While the momentum for crypto ETFs is growing, not all assets are on an equal playing field. Both XRP and SOL remain entangled in legal disputes regarding their classification as securities. This has led the SEC to delay any serious consideration of their ETF filings.
Earlier this year, Solana ETF filings were rejected, and analysts believe XRP faces similar challenges. For XRP and SOL ETFs to move forward, regulatory clarity will be essential, something that may only come after a leadership shift at the SEC.
The anticipated departure of SEC Chair Gary Gensler in early 2025 could signal a more open regulatory environment.
Gensler’s cautious stance has been seen as a major obstacle for new crypto investment products. Bloomberg analysts believe a change in leadership could accelerate approvals, albeit with HBAR leading the pack.
Read more about HBAR:
XRP to USD: Convert Hadera (HBAR) to USD
Hadera (HBAR), Market Cap, Price Today & Chart History
Will Niche ETFs Gain Investor Attention?
Despite HBAR’s potential to lead the ETF race, Bloomberg analyst James Seyffart questioned whether niche ETFs like HBAR or Litecoin will attract significant investor interest.
While Bitcoin and Ethereum ETFs have already proven their appeal, smaller tokens face greater challenges in building widespread demand.
That said, firms like Hashdex, Franklin Templeton, and Bitwise are expected to continue pushing for new filings. HBAR’s positioning as a commodity-like asset may give it an advantage with regulators and institutional investors looking to expand their crypto portfolios.
Conclusion
As the crypto market anticipates a surge of new ETFs in 2025, HBAR appears poised to take the lead. Bloomberg’s Eric Balchunas has highlighted HBAR’s cleaner regulatory status as a major factor, predicting it will beat XRP and Solana to market.
However, the success of these ETFs will ultimately depend on investor demand and upcoming changes at the SEC.
Frequently Asked Questions
1. Why is HBAR more likely to gain ETF approval than XRP and SOL?
HBAR has not been classified as a security, avoiding the regulatory challenges faced by XRP and Solana.
2. What is delaying XRP and Solana ETFs?
Both XRP and Solana face legal battles with the SEC over their classification as securities, creating hurdles for ETF approvals.
3. How will SEC leadership changes impact crypto ETFs?
The expected departure of SEC Chair Gary Gensler could lead to a more favourable stance on crypto ETFs, accelerating approvals for assets like HBAR.
Investor Caution
While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.
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