Currently, the market is waiting for the next ETFs of cryptocurrencies. Altcoin -based funds can join the Bitcoin and Ether funds. Which of them will appear on the market the fastest?
What is ETF? Guide for beginners!
Exchange Traded Fund (ETF) is an investment fund listed on the stock exchange that combines the features of shares and traditional investment funds. It can be based on only one base value or a group of assets. Over the years, ETFs have gained immense popularity among individual and institutional investors.
Where does an ETF phenomenon come from? They simply facilitate investing in assets, because such an investment resembles the purchase of shares. This is especially important in the case of cryptocurrencies, because by investing in ETF BTC or ETH you do not have to set up a portfolio for these digital currencies – you just have fund units and you are somehow indirectly the owner of Bitcoin or Ether. All the obligation with the self-storage of cryptocurrencies for you disappears and takes it on your shoulders ETF.
ETFs BTC and ETH
The year 2024 was marked by the emergence of BTC and ETH ETFs – first in January bitcoin funds started, and a few months later their Etheric counterpart. Today, both types of ETFs increase demand for two main cryptocurrencies.
This is how the flows of the BTC ETF market look like:
Below you can see how much BTC has a specific ETF issuer (as of February 14, 2025):
Importantly, changes regarding ETFs are planned. The funds will be expanded with the function of staking, which will make ETFs an interesting alternative to bank deposits. The owner of ETH units ETH will be able to earn on staking (i.e. as on a deposit), as well as an increase in the value of the base value itself – ETH.
Another ETFs
Which ETFs will start as another? Bloomberg’s experts say that Litecoin -based ones have the best chances. They value the chances of their start at 90%. Next in the queue are ETFs Dogecoin (75%), Solan (70%) and finally XRP (65%).
But why such a low note for XRP ETFs? This is the result of the fact that it is still not quite known whether XRP is in American law the secreet or goods. In a court case SEC vs. Ripple, the judge who ran the trial, said that the token has a dual nature: he is a valuable paper when an investor buys it directly from Ripple, and a commodity when he is traded on the cryptocurrency exchange. The question is now whether this Zagwozdka will make SEC not dare to approve applications for the creation of ETFs XRP.
As for Litecoin and Dogecoin, the matter is simpler, because both of these cryptocurrencies technologically resemble Bitcoin (LTC also in terms of economics).
You can buy Bitcoin and other cryptocurrencies in a simple and safe way on the Zondacrypto stock exchange.
