In a latest development, Nate Geraci, the President of the ETF store has taken to X to highlight that crypto ETFs will continue dominating headlines in 2025, emphasizing their growing significance and influence in the market as the year progresses.
Bold Predictions
Geraci reiterated comments from Franklin Templeton’s head of digital assets as he shared “It feels like ETF legal staffs will be busy in the first part of the year.”
Notably, he has outlined five bold predictions for the crypto ETFs in 2025. With the crypto ETF space expected to exhibit dramatic growth, Geraci has shared five developments that are expected to dominate financial headlines.
Combined Spot BTC and ETH ETFs Launch
Geraci looks forward to the launch of combined spot Bitcoin and Ethereum ETFs, which seems approaching fast after the recent regulatory milestones. Notably, the SEC recently approved a dual Bitcoin and Ethereum ETF for Hashdex and Franklin Templeton.
These combined ETFs are expected to attract broader investor participation, simplifying crypto exposure within a single product. Notably, Bloomberg ETF analyst Eric Balchunas previously predicted a possible launch in January 2025.
“Launch likely in January. They are market cap weight so 80/20 BTC/ETH approx. Notable that Hashdex & Frankie are first. Good for them,” Balchunas shared in December.
Spot ETH ETF Options Trading
Building on the momentum of Bitcoin spot ETF options trading, Geraci predicts the emergence of Ethereum spot ETF options in 2025. The OCC’s (Office of the Comptroller of the Currency) recent approval of Bitcoin ETF options trading has already set the stage for such developments.
BlackRock’s Bitcoin ETF options have performed exceptionally well, with sales surpassing $425 million on the first trading day. Similarly, Grayscale’s Bitcoin ETF options hit the market on November 21. Both advancements suggest Ethereum’s inclusion may only be a matter of time.
Spot BTC & ETH ETF In-Kind Creation
Secondly, Geraci foresees the introduction of in-kind creation and redemption mechanisms for spot BTC and ETH ETFs. This follows key SEC approvals of cash-create redemptions for Bitcoin ETFs in January and ETH ETFs in May.
Notably, the In-kind mechanisms are expected to enhance liquidity and reduce costs, making ETFs more attractive to institutional investors. In-kind creations are believed to be better for investors due to spreads and tax consequences. They are considered a better option since they provide the cleanest structure for the issuer and the end investors. However, cash redemptions compel issuers to hold cash equivalents that back their ETFs.
Spot ETH ETF Staking
Nate Geraci predicts that the SEC’s restriction on staking for ETH ETFs could change, as major players like BlackRock and Fidelity initially sacrificed staking to gain SEC approval. The European markets have already embraced staking ETPs, with products like Bitwise’s Solana staking ETP gaining traction. If regulatory barriers lift under a pro-crypto administration, ETH ETF staking could become a reality.
SOL ETF
Geraci’s final prediction concentrates on the approval of a spot Solana ETF. While the SEC has recently halted new filings for Solana ETFs, a Trump administration could improve the chances of approval as it suggests a more favorable environment for novel ETF products.
“The greatest Solana win coming from the new Trump Presidency will be our long-awaited ETF in 2025 or 2026. No surprise, the incredible VanEck team will lead the charge here with support from 21Shares and Canary Capital,” Dan Jablonski, head of growth at news and research firm Syndica noted.
