Wall Street is gearing up for fresh cryptocurrency exchange-traded funds (ETFs) in 2025. These products are expected to push boundaries by offering greater risk and creativity.
Financial firms aim to attract new investors into the crypto market while retaining the interest of existing participants. The upcoming offerings signal an expansion beyond Bitcoin and Ether, with companies seeking approval for ETFs tied to alternative cryptocurrencies like Solana, XRP, Litecoin, and Hedera (HBAR).
Rising interest in Solana ETFs
The probability of Solana ETFs being listed in 2025 continues to grow. On December 27, Volatility Shares filed its S-1 registration statement with the US Securities and Exchange Commission (SEC) for a futures-based Solana ETF. Before this, VanEck and 21Shares submitted applications for spot Solana ETFs in June, followed by Canary Capital in October.
Polymarket, a cryptocurrency prediction platform, recently updated its projection on Solana ETF listings in the US. As of January 1, the platform estimated a 77% likelihood of approval, which climbed to 84% by January 2. Analysts like Matthew Sigel, VanEck’s head of research, believe the demand for Solana ETFs will make them an essential part of the 2025 crypto market.
XRP and other Altcoin ETFs expected to gain traction
In addition to Solana, XRP ETFs are also making strides toward approval. Canary Capital and Bitwise filed their S-1 registration statements for spot XRP ETFs in October. Bloomberg Intelligence analyst Athanasios Psarofagis expects 2025 to mark a significant year for crypto ETF innovation as more issuers consider incorporating diverse cryptocurrency strategies into their portfolios.
He described the ongoing evolution of ETFs as one of the most active and competitive areas in the financial markets. Asset managers are also exploring options for other altcoins. For instance, Canary Capital has filed for ETFs tied to Litecoin and HBAR, further expanding the range of digital assets targeted by ETF issuers.
Convertible bond and derivatives-based ETFs on the horizon
Beyond traditional crypto ETFs, new convertible bonds and derivatives-based funds are in development. REX ETF, for example, has filed to launch the REX Bitcoin Corporate Treasury Convertible Bond ETF, which will invest at least 80% of its assets in convertible bonds issued by Bitcoin-holding corporations. Any adjustments to this allocation would require prior notice to investors.
Strive, another asset management firm plans a fund focused on derivatives like swaps and options. This fund would aim to provide exposure to convertible securities from companies such as MicroStrategy, which holds significant Bitcoin reserves. With such developments, 2025 is shaping up to be a transformative year for cryptocurrency ETFs as financial firms continue to expand the scope and sophistication of their offerings.