Several ETF issuers are gearing up to launch new products focused on the cryptocurrency in 2025 after last year saw the introduction of more ETFs related to the crypto space than ever before. Some of the experts suggest that next wave of products may redefine ETF industry and continue popularizing cryptocurrencies in investment portfolios.
According to Bloomberg Intelligence analyst, Athanasios Psarofagis, the trend is as follows: ‘This is the expansion of launches to bring in crypto strategies in ETF’. The news follows the approval of spot bitcoin ETFs working in January 2024, and the subsequent extension of SEC’s collaboration towards spot ether ETFs in July.
Such favourable outlook towards launching new cryptocurrency ETF is the result of the evolving regulatory framework around such an instrument coupled with the improved performance tracked in the market.
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“It’s the hot thing issuers love to strike when the theme is hot. Cryptos keep coming, Psarofagis further pointed adding that we will see crypto everything,” in reference to more filings for crypto- linked ETFs.
Some of the products in development that were reflected in the latest filings with the SEC are as follows; To leverage the increasing interest in crypto investments. Notable submissions include:
ProShares: An investment instrument linked to the performance of the S&P 500 index which is priced in Bitcoin.
Strive Asset Management and REX Shares: Products dedicated to convertible bonds and derivative in relation to cryptocurrencies.
Volatility Shares: A fund exclusively associated with Solana and some futures that may cover the token’s prices.
If approved these products can greatly extend the variety of crypto related investments open to both institutional and private investors.
The filings arrived in the wake of BlackRock’s iShares Bitcoin Trust (IBIT), for which analysts claimed was the ‘greatest launch in ETF history .’ The success of BlackRock’s product shows the growing interest of investors in Bitcoin related products. , on the other hand, MicroStrategy’s co-founder Michael Saylor only built up more Bitcoins as prices rose even higher, adding to his firm’s stash.
“This is the evolution of the crypto ETF spectrum,” said Todd Sohn, ETF strategist at Strategas. “This is futures-based, spot, thematic, and now convertibles the market is getting increasingly specialized as well as accommodating for new strategies.”
This approval of these new funds, therefore, could signal a new chapter for the crypto ETF market. Some people expect that new products associated with convertible bonds or with Solana or something else will attract more different investor types and address unique risk requirements.
By going deeper in the Crypto ecosystem, ETF issuers are well aware of the need to offer s that match the market. If the SEC approves these proposals, then 2025 could be the year that cryptocurrency becomes fully integrated with conventional financial markets.
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