In the fast-paced crypto industry, ETFs are transforming the way investors access cryptocurrency in the traditional financial markets. These ETFs provide regulated exposure to crypto without requiring direct ownership.
These ETFs combine the benefits of improved security, enhanced liquidity, and wider accessibility for crypto investments and make underlying crypto assets more appealing. As Bitcoin and Ethereum’s spot ETFs have undergone massive success, it has driven new contenders like XRP, Hedera, and Polkadot into the race.
So let’s explore all these major top crypto assets that could potentially have an ETF and can further transform crypto investments. But before diving in, it’s essential to find out why crypto ETFs have been at the center of discussions in the past few months.
Why Crypto ETFs Are Gaining Traction?
The popularity of crypto ETFs is easily understandable due to the fact that they offer a simple way of investing in cryptocurrency assets without the need for hard-to-follow procedures. They have simplified the process of entering the crypto market by establishing a bridge between the traditional financial sector and the crypto market.
With upcoming spot crypto ETFs like XRP, Hedera, and Polkadot, traders are now searching for new opportunities in crypto investments that go beyond Bitcoin and Ethereum. These projects are providing real-world utility and innovations, which have attracted millions of investors who want to diversify their investment portfolio.
Upcoming Spot Crypto ETFs
Here is an overview of three upcoming spot crypto ETFs, which are as follows:
Ripple (XRP)
XRP is currently trading at $2.50 with a market cap of $148 billion. It has a total supply of 99.98 billion, of which 58.44 billion are in circulation. Market data shows that its price has surged by 400% in the past year.
Experts predict a massive surge in demand for XRP following the approval of spot XRP ETFs. This will essentially result in an increased market price, with some predictions speculating as high as $10 for XRP.
Status of XRP ETF
The filings for the XRP ETF begin in October 2024, and around 9 firms are waiting for the approval as of now, which include prominent asset managers like Bitwise, Canary Capital, 21Shares, WisdomTree, ProShares, CoinShares, Grayscale, Volatility Shares, and Franklin Templeton.
The SEC recently approved ProShares XRP futures ETF and has extended the review process of spot XRP ETF applications. Given that spot Bitcoin and Ethereum ETFs also followed the same path, this approval of the futures XRP ETF and its regulatory clarity has increased the chances of approval for spot XRP ETFs.
Hedera (HBAR)
HBAR is the native currency for the Hedera network, a next-gen blockchain alternative that uses Hashgraph technology. Hedera is known for its low-latency and high-speed transactions, with most of its clients residing in the institutional sector.
According to CoinMarketCap, HBAR is trading at $0.20, which has surged by 91% in the past year. It currently has a market cap of $8.84 billion.
According to some crypto analysts and early speculations, the HBAR price could see a notable rise after ETF approval. Some short-term predictions indicate that it could rise up to $0.60 within 1 or 2 weeks of approval, while long-term projections suggest that it might cross $1 with continuous development and institutional adoption.
Status of Hedera ETF
At the time of writing, two firms have filed for spot Hedera ETFs, which include Canary Capital and Grayscale. In the future, we anticipate the addition of more firms to this group. Currently, the SEC has not given any timeline for the Hedera ETF approval, but it is expected by the end of 2025.
Hedera ETF has a great chance of approval not only because it never faced any legal issues, but SEC’s stance on HBAR has also been clear of not being a security, unlike most leading crypto assets, such as Solana (SOL) and XRP.
Polkadot (DOT)
Polkadot is an interoperability blockchain protocol, which is developed to provide cross-chain transaction solutions. DOT is the native currency of the Polkadot network and it is currently trading at $5, with a market cap of $7.9 billion. Its price has declined by 26% in the past year.
Experts predict that if spot Polkadot ETF receives approval, then its price may surge to new heights. Short-term price prediction indicates that within 2-3 weeks after the approval, the price may reach $10, while long-term prediction suggests it might reach as high as $20 in post-approval market uptrend.
Polkadot ETF Status
Currently, 3 firms have filed for the Polkadot ETF which include 21Shares, Tuttle Capital Management, and Grayscale. The timeline for its approval is not yet confirmed, but it is expected by the end of 2025.
Similar to Hedera, the Polkadot ETF has a good chance of approval because of its increasing institutional adoption and use case. Further, it has not faced any legal issues and is not classified as security, thus increasing its chances of approval.
Other Upcoming Spot Crypto ETFs
| Token | Institutions Filed For Approval |
|---|---|
| Solana ETF | VanEck, 21Shares, Bitwise, Canary Capital, Grayscale, Franklin Templeton |
| Aptos ETF | Bitwise |
| MOVE ETF | Rex Shares, Osprey Funds |
| Sui ETF | Canary Capital, 21Shares |
| LiteCoin ETF | Canary Capital, CoinShares |
| Dogecoin ETF | 21Shares, Bitwise, Grayscale, REX Shares |
Final Thoughts
Crypto ETFs provide exciting opportunities for investors who want regulated and hurdle-free access to crypto investments. The rise and approval of new crypto ETFs increases market participation and provides confidence in the crypto market.
The above listed upcoming spot crypto ETFs have the potential to drive growth in the crypto ecosystem. As chances of regulatory approval for these ETF filings increase, it will attract a new wave of investors and make the future of crypto investment even more promising.
