Crypto ETFs Near Approval Analysts Raise Odds to 90 Percent

Bloomberg Analysts See 90% Approval Odds for Crypto ETFs as SEC Stance Softens

In what could be a major turning point for cryptocurrency investing in the United States, Bloomberg analysts Eric Balchunas and James Seyffart have predicted that U.S. regulators are now highly likely to approve a broad set of cryptocurrency exchange-traded funds (ETFs). The development underscores a continued shift at the Securities and Exchange Commission (SEC) toward a more crypto-friendly posture — a move that could dramatically reshape how both institutional and retail investors gain exposure to digital assets.

Source: X

A Bold New Forecast: 90% Odds of Approval

James Seyffart shared the bullish forecast in a post on social media platform X (formerly Twitter) last Friday, stating that he and Balchunas now assign a 90% or greater probability that crypto-based ETFs — beyond just Bitcoin — will receive the green light from the SEC. According to the analysts, this confidence stems from what they described as a series of "constructive" discussions between ETF issuers and regulatory officials.

“This is not just about Bitcoin anymore. The conversations between ETF providers and the SEC have been far more positive than in years past,” Seyffart noted, signaling a remarkable change from the combative atmosphere that had long characterized crypto’s relationship with federal regulators.

SEC May Reclassify Altcoins as Commodities

Adding another layer of significance to their analysis, Balchunas and Seyffart suggested that the SEC appears poised to formally recognize several major altcoins — including Litecoin (LTC), Solana (SOL), Ripple’s XRP, and Dogecoin (DOGE) — as commodities rather than securities. Such a move would shift regulatory oversight for these assets to the Commodity Futures Trading Commission (CFTC), potentially simplifying the path for ETFs that include these digital currencies.

“This classification would be a game-changer,” Seyffart remarked. “It would remove a major obstacle for asset managers seeking to include these coins in regulated investment products.”

Approvals Could Take Time

Despite the optimism, Seyffart cautioned that final approvals for new ETFs and their actual spot-market launches might not materialize immediately. “Even with the SEC’s friendlier stance, we’re likely looking at a timeline that could stretch beyond October,” he warned.

Source: Farside

The delay, he explained, stems from the intricate review process required to ensure that any newly approved ETFs meet all legal, operational, and market integrity standards.

Bitcoin ETF Success Fuels Altcoin Ambitions

The shift in regulatory sentiment comes on the heels of a historic surge in demand for Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as a resounding success, attracting an eye-popping $70 billion in assets under management after just 31 consecutive days of inflows. That figure, reached in just 341 days, marks the most successful ETF debut in U.S. history.

The unprecedented success of Bitcoin ETFs has emboldened asset managers to look beyond BTC and consider launching ETFs for other cryptocurrencies. Firms that previously stayed on the sidelines during the digital asset boom are now eager to capitalize on the growing appetite for crypto exposure via traditional financial products.

Ether ETFs: A More Modest Start

While Bitcoin ETFs have broken records, the journey has been rockier for Ethereum-based investment vehicles. Spot Ether (ETH) ETFs, which launched last July, have seen relatively muted demand compared to their Bitcoin counterparts.

Data from blockchain analytics firm Glassnode indicated that as of May 2025, the majority of Ether ETF investors remained “deeply underwater,” with many still holding positions acquired at significantly higher price levels during previous crypto peaks.

Nonetheless, recent inflow data suggests a gradual recovery in investor confidence, as Ether’s underlying use cases — from decentralized finance (DeFi) to non-fungible tokens (NFTs) — continue to attract attention.

Altcoins: Rising Interest, but Bitcoin Still Reigns

With regulatory doors potentially opening for altcoin ETFs, interest in Solana, XRP, Litecoin, and Dogecoin has grown. However, Bloomberg’s analysts argue that while these assets have strong communities and distinct use cases, they are unlikely to dethrone Bitcoin as the centerpiece of crypto ETF offerings anytime soon.

“Bitcoin remains the flagship,” Balchunas emphasized. “It’s the most widely understood, most liquid, and most institutionally accepted cryptocurrency. Altcoin ETFs could absolutely succeed, but Bitcoin will likely remain the dominant force in this space for the foreseeable future.”

A New Era for Crypto Regulation and Investment

If the SEC follows through with these approvals and reclassifications, it would mark a dramatic shift from the agency’s historically cautious approach. For years, the SEC resisted crypto ETFs on the grounds of market manipulation concerns, insufficient investor protections, and questions about the maturity of crypto markets.

But with Bitcoin ETFs demonstrating strong demand, liquidity, and relatively stable performance, regulators appear more comfortable with extending this model to other digital assets.

“Each successful ETF launch strengthens the argument that crypto can fit within the existing regulatory framework — provided the right safeguards are in place,” Seyffart said.

Implications for Investors

For individual and institutional investors, the potential wave of new crypto ETFs offers several advantages:

• Diversified exposure: Investors could gain access to a basket of digital assets via a single, regulated product, reducing the need to navigate crypto exchanges directly.

• Simplicity and security: ETFs provide an easy, familiar vehicle for crypto investment without requiring direct custody of tokens, which can reduce risks associated with hacks or lost keys.

• Broader market participation: By lowering the barrier to entry, these ETFs could attract more conservative investors who were previously hesitant to engage with cryptocurrency markets.

Conclusion: The Crypto ETF Landscape Is Poised for Transformation

As the crypto ETF market evolves, it’s clear that both regulators and investors are moving toward a new equilibrium — one where digital assets are increasingly integrated into mainstream finance. While Bitcoin’s dominance remains unchallenged for now, the stage is set for altcoins to play a larger role in investment portfolios through regulated products.

With Bloomberg’s top analysts predicting a 90% chance of approval for these ETFs, and the SEC signaling a softer stance, the coming months could usher in a new chapter for crypto investing in America.

The message to investors? Watch this space. The future of crypto ETFs is no longer a distant possibility — it’s fast becoming reality.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.