"Next Year's First Crypto ETF Will Be a Synthetic ETF of Bitcoin and Ethereum"

Uk Jin

Summary

It is predicted that the first crypto ETF next year will likely be a synthetic ETF of Bitcoin and Ethereum.
The negative stance of regulatory bodies on altcoins like Solana and Ripple seems to have influenced this.
Litecoin and Hedera are receiving positive evaluations from regulatory bodies, making them more likely to qualify for spot ETF launches first.

Interest in exchange-traded funds (ETFs) based on cryptocurrency spot markets remains high, with the first ETF expected next year likely to be a synthetic ETF of Bitcoin (BTC) and Ethereum (ETH).

According to Cointelegraph on the 17th, Bloomberg ETF analysts Eric Balchunas and James Seyffart stated on their X (Twitter) that "the first crypto ETF to emerge next year will be one that tracks both Bitcoin and Ethereum prices."

The reason is that regulatory bodies are not very favorable towards the ETFization of altcoins like Solana (SOL) and Ripple (XRP). James Seyffart mentioned, "The Securities and Exchange Commission (SEC) has already rejected Solana spot ETFs multiple times. It will only be after the administration of Donald Trump takes office that other cryptocurrency spot ETFs might emerge."

Eric Balchunas noted, "Regulatory bodies are actually more positive about Litecoin (LTC) and Hedera (HBAR)," adding, "These two cryptocurrencies might qualify for spot ETF launches before Solana and Ripple. Litecoin is highly likely to be classified as a commodity since it's a hard fork version of Bitcoin, and Hedera has never been classified as a security by the SEC."