The world of cryptocurrency investing is on the cusp of a seismic shift, as 2025 shapes up to be the year of the crypto exchange-traded fund (ETF). According to a groundbreaking report from Laser Digital, the digital asset arm of financial powerhouse Nomura, more than a dozen new crypto ETFs could hit the U.S. market in the coming months – a development that could supercharge mainstream adoption and transform the way institutions engage with digital assets.
A New Era for Crypto ETFs
The crypto ETF landscape has already seen a major milestone with the launch of the first spot bitcoin ETFs in the U.S. in January 2024. Blackrock’s iShares Bitcoin Trust (IBIT) made history, amassing a staggering $53 billion in assets under management (AUM) in just 11 months – surpassing all previous ETF launches. But according to Laser Digital, this is just the beginning.
More than twelve crypto ETFs could be launched in the U.S. this year, if approved by the Securities and Exchange Commission (SEC).
– Laser Digital report
Innovative New Products on the Horizon
Among the 12 ETF filings currently pending SEC approval are a range of innovative products that could open up new avenues for crypto exposure. These include:
- A ProShares ETF that denominates the S&P 500’s return in bitcoin
- A combined bitcoin/ether ETF
- Litecoin, XRP, and Solana-based products
Laser Digital believes a bitcoin/ether combo ETF is likely to gain approval first, given the established track record of the underlying assets. Such a product would give investors simultaneous exposure to the two largest cryptocurrencies in a single, regulated vehicle – a potentially game-changing development.
Regulatory Tailwinds Fuel Optimism
The optimistic outlook for crypto ETFs in 2025 is bolstered by an increasingly favorable regulatory environment. The appointment of crypto-friendly Paul Atkins as SEC chairman, coupled with the departure of Gary Gensler, signals a potential easing of the agency’s stance towards digital assets.
With the appointment of crypto-friendly Paul Atkins as chairman of the SEC, and the exit of Gary Gensler, ongoing lawsuits against crypto companies are likely to fade away, the report said, and this makes the approval of these new ETFs more likely.
– Laser Digital report
The return of President-elect Donald Trump to the White House, backed by a team of crypto-savvy regulators, further reinforces the positive sentiment. This changing of the guard at the highest levels of government and regulation could pave the way for a new era of crypto integration into traditional finance.
Institutional Adoption Set to Soar
The anticipated wave of crypto ETF launches is expected to drive a surge in institutional adoption of digital assets. Regulated, transparent, and easily accessible ETF products remove many of the barriers that have historically deterred large investors from gaining crypto exposure.
The ETF market is expected to continue to grow in terms of AUM, Laser Digital said, and will see wider adoption by institutional investors in 2025.
– Laser Digital report
As more institutional capital flows into the crypto space via ETFs, it could have a profound impact on the market’s growth and maturity. Increased liquidity, dampened volatility, and a stronger connection to traditional financial markets could all be on the cards.
The Road Ahead for Crypto ETFs
While the outlook for crypto ETFs in 2025 is undeniably bullish, challenges remain. ETF issuers will need to navigate lingering regulatory hurdles, educate investors on the unique risks and opportunities in the space, and build robust infrastructure to support the anticipated influx of institutional capital.
Nevertheless, the pieces appear to be falling into place for a breakout year for crypto ETFs. With a maturing market, innovative new products, and a supportive regulatory backdrop, 2025 could mark the moment when crypto truly enters the mainstream of institutional investing.
As Laser Digital’s report makes clear, the crypto ETF revolution is no longer a matter of if, but when. And for those paying attention, 2025 is shaping up to be the year that could change everything. The only question that remains: are you ready?
