Expert Expects Wave of Approvals by End of 2025 Despite Current Delays
Nate Geraci, president of ETFStore and a well-known voice in the ETF industry, shared on social media that the U.S. Securities and Exchange Commission (SEC) has postponed decisions on several major crypto-related ETF filings. Despite these delays, Geraci remains optimistic and expects approval for all delayed products by the end of this year. These postponements come amid growing interest in expanding crypto ETF offerings beyond Bitcoin, especially in the altcoin and staking segments that are gaining increasing mainstream appeal among traditional investors.
List of Delayed ETFs and Their Market Significance
Among the delayed products are ETFs from leading financial institutions, each of which could open new opportunities for investors:
- Solana (SOL) and XRP ETFs from Franklin Templeton
- Hedera Hashgraph (HBAR) ETF from Grayscale
- Dogecoin (DOGE) ETF from Bitwise
- Staking-related proposals for Ethereum ETFs from Franklin and Fidelity
Additionally, the SEC has deferred rulings on in-kind creation/redemption features for Invesco Galaxy’s Bitcoin and Ethereum funds.
“The postponement of decisions on these ETFs was expected, given the SEC’s cautious approach to regulating the cryptocurrency market,” notes Alexei Fedorov, a financial analyst from the investment company “Digital Assets.” “However, it’s important to understand that a delay doesn’t mean rejection, and the regulator continues to carefully consider these innovative financial products.”
Of particular interest are the staking ETF proposals, which would allow investors not only to benefit from potential Ethereum price growth but also to generate additional income through the staking mechanism. This hybrid approach could significantly enhance the attractiveness of cryptocurrency ETFs for traditional investors seeking both capital appreciation and regular income.
Geraci’s Optimism: “All Will Be Approved This Year”
Despite the latest delays, Nate Geraci maintains confidence in a positive outcome for all proposed products. “I still think all will be approved this year,” the expert stated, signaling his confidence that regulatory momentum will catch up with market demand in 2025.
Geraci is known for his accurate predictions regarding cryptocurrency ETF approvals. In 2023, he was one of the few experts who correctly predicted the approval of spot Bitcoin ETFs in early 2024, followed by Ethereum ETFs in the summer of the same year.
“Geraci’s forecast deserves attention, given his track record and deep understanding of SEC regulatory processes,” says Maria Kovaleva, head of cryptocurrency research at investment bank Morgan Stanley. “His optimism reflects the industry’s growing confidence that regulators are gradually creating a more favorable environment for cryptocurrency investment products.”
Context: Evolution of the SEC’s Regulatory Approach
To understand the significance of Geraci’s prediction, it’s important to consider the historical context of cryptocurrency ETF approvals in the US. After years of rejections, the SEC finally approved the first spot Bitcoin ETFs in January 2024, marking a turning point for the industry. This was followed by the approval of spot Ethereum ETFs in July 2024, paving the way for a broader spectrum of cryptocurrency investment products.
“We’re observing a gradual evolution in the SEC’s approach to cryptocurrency ETFs,” explains Jonathan Wilson, a partner at law firm Blockchain Legal Partners. “From categorical rejections in previous years, the regulator has moved to a more nuanced approach based on careful evaluation of each individual asset and fund structure.”
The approval of ETFs for altcoins such as Solana, XRP, HBAR, and Dogecoin, as well as staking ETFs, would represent the next logical step in this evolution. It would also reflect the growing recognition of the legitimacy and unique characteristics of various cryptocurrency assets beyond Bitcoin and Ethereum.
Market Implications of Potential Approvals
If Geraci’s prediction comes true and the SEC indeed approves all delayed products by the end of 2025, this could have significant implications for the cryptocurrency market:
- Increased institutional participation: Altcoin ETFs would provide access to these assets for institutional investors who previously could not directly invest in them due to regulatory restrictions or operational complexities.
- Enhanced liquidity: Increased institutional participation would likely lead to greater liquidity for the respective cryptocurrencies, which could contribute to reduced volatility and more efficient pricing.
- Legitimization of altcoins: Approval by a regulator of the SEC’s caliber would serve as a kind of “stamp of approval,” increasing confidence in these assets among a wide range of investors.
- Price appreciation: Historically, ETF approvals have often led to price increases for the corresponding cryptocurrencies. For example, after Bitcoin ETF approval, BTC’s price rose by approximately 35% during the first three months.
“The approval of ETFs for Solana, XRP, and other altcoins could lead to a significant capital inflow into these assets,” predicts Alexander Greenberg, senior analyst at Binance Research. “The situation with XRP is particularly interesting, given its long history of legal disputes with the SEC, which appear to have finally been resolved in Ripple’s favor.”
Special Significance of “In-Kind” Mechanisms and Staking
The deferred decisions on in-kind creation/redemption mechanisms for Invesco Galaxy funds and staking proposals for Ethereum ETFs deserve special attention.
The in-kind mechanism allows authorized participants to create and redeem ETF shares directly in the underlying asset (in this case, BTC or ETH) rather than in cash equivalent. This is considered more tax-efficient and can improve tracking of the underlying asset’s price.
“Allowing in-kind mechanisms for cryptocurrency ETFs would be a significant breakthrough,” asserts Ekaterina Volkova, a specialist in cryptocurrency asset taxation. “This would substantially improve the tax efficiency of these products, making them even more attractive to institutional investors.”
As for staking, its integration into Ethereum ETFs would allow investors to earn income from the transaction validation process in the network without dealing with the technical aspects of staking themselves. This income, which currently amounts to about 3-4% annually in ETH, could significantly enhance the attractiveness of these products compared to conventional ETFs that simply track the asset’s price.
“Staking ETFs represent an innovative hybrid between traditional investment products and cryptocurrency technologies,” explains Mikhail Stepanov, founder of consulting firm Staking Solutions. “They not only make cryptocurrency investments more accessible but also democratize access to staking income for a wide range of investors.”
Conclusion: On the Threshold of a New Era in Cryptocurrency Investments
Nate Geraci’s prediction that the SEC will approve all delayed cryptocurrency ETFs by the end of 2025 may signal the approach of a new era in the integration of cryptocurrencies with traditional financial markets. If his prediction comes true, investors will gain unprecedented access to a wide range of cryptocurrency assets through regulated and familiar investment instruments.
“We stand on the threshold of a significant transformation in how investors interact with cryptocurrency assets,” concludes Professor David Chen from the Wharton School of Business. “The expansion of the spectrum of approved cryptocurrency ETFs could be a catalyst for the next wave of institutional adoption and mainstreaming of this asset class.”
While approval delays may cause disappointment for some market participants, they also underscore the thoroughness with which the SEC approaches the evaluation of these innovative products. Given the complexity and novelty of cryptocurrency assets, such a cautious approach may ultimately contribute to creating a more sustainable and reliable regulatory environment for the industry’s long-term growth.
As we await the SEC’s decisions on these applications, Geraci’s forecast offers an optimistic view of the future of cryptocurrency investment products, suggesting that regulatory obstacles are gradually giving way to a more open and inclusive approach to digital assets in the traditional financial ecosystem.