New cryptocurrency exchange-traded funds (ETFs) are on the way, following the approval of Bitcoin and Ethereum ETFs in 2024. The new crypto funds would allow traders to purchase cryptocurrencies such as Solana and XRP through a low-cost fund, making these cryptos more accessible to clients of traditional brokerages, and potentially raising their prices.
Here are key details on these new crypto ETFs and which cryptocurrencies will be available.
New cryptocurrencies are on the way in 2025
Traders should expect to see new cryptocurrencies making their ETF debuts in 2025, as the crypto-friendly administration of U.S. President Donald Trump eases regulations on the sector. Fund managers have already filed applications to create investment funds for the most popular cryptocurrencies, including Solana, XRP and Avalanche.
A variety of fund companies have filed applications to create new ETFs. As of early March, the SEC had received 64 filings for cryptocurrency ETFs, according to Eric Balchunas, senior ETF analyst, Bloomberg. XRP is one of the more popular cryptos for a potential fund, with Franklin Templeton, Grayscale, Bitwise, Canary Capital, WisdomTree and CoinShares filing applications.
Solana is another of the largest cryptocurrencies, and it’s attracted attention from asset manager VanEck, which filed an application for an ETF in June 2024, and Franklin Templeton, which filed in February 2025. In March, VanEck filed for an ETF that would track the crypto Avalanche.
Beyond some of these well-known names, applications have also been made to create ETFs for LiteCoin and HBAR.
While there’s no timetable for when these new ETFs might be approved, many fund companies submitted applications anticipating a positive outcome with a crypto-friendly administration in office. They expect an approval sooner rather than later.
The advent of new ETFs could draw more money to these specific coins, and since they would trade on traditional exchanges, they’re easier to purchase. Spot ETFs based on these coins would track the performance of the coin, so they’re an effective way to get the coin’s return.
The two largest cryptos by total value are Bitcoin and Ethereum, both of which have spot ETFs after approvals from the Securities and Exchange Commission (SEC) in 2024. The spot Bitcoin ETFs attracted $65 billion of investment in 2024, helping the coin surge to new all-time highs.
The largest Bitcoin ETF represents most of that total inflow, and the best Bitcoin funds charge low fees, making it easier to buy the funds via an ETF than through a cryptocurrency exchange. The commissions at crypto exchanges are typically higher, and pricing can often be opaque.
Risks of investing in cryptocurrency
While new crypto ETFs may make it easier to trade the coins, the ETFs continue to carry many of the same risks as the coins themselves. The biggest risk is that cryptocurrencies are not backed by the assets or cash flow of an underlying company. The only thing keeping the price up is demand for the coins, based on the expectation that they can be sold for more later.
In other words, the price of cryptocurrency is based only on sentiment. This setup means that crypto is subject to the same kind of volatility as risky stocks, with traders buying during speculative times and selling during “risk-off” periods, when traders shun risk and flee to safety.
For these reasons, then-SEC chair Gary Gensler warned traders when his agency approved Bitcoin ETFs in January 2024 and noted that the agency’s approval was not an endorsement of the funds as an investment.
Gensler stated: “Investors should remain cautious about the myriad risks associated with bitcoin and products whose value is tied to crypto.”
He also noted: “Bitcoin is primarily a speculative, volatile asset that’s also used for illicit activity including ransomware, money laundering, sanction evasion, and terrorist financing.”
Traders looking to make money on cryptocurrency should not wager any money that they’re not willing to lose. Crypto is tremendously volatile, and while the price of Bitcoin has skyrocketed over time, many other cryptos have turned out to be worthless or complete frauds and blow-ups.
Bottom line
New crypto ETFs appear to be on the way, as an easier regulatory environment under Trump is poised to permit a new way to buy these highly speculative assets. Traders who are considering buying them should carefully consider the risks of doing so.
Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.
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