Which Cryptocurrency Is Most Likely to Get an ETF Approval?

Which Cryptocurrency Is Most Likely to Get an ETF Approval?

Recently, global investors have been closely watching the progress of cryptocurrency ETF approvals. As the crypto market moves toward greater integration with traditional finance, both institutional and retail investors are showing keen interest in ETF developments. So, which cryptocurrency is closest to an ETF approval? In this post, we’ll take a deeper look at Bitcoin (BTC) and Ethereum (ETH)—and explore why they're considered the most likely candidates.

What Is an ETF and Why Does It Matter?

An ETF (Exchange-Traded Fund) tracks the price movements of a specific asset (stocks, commodities, indices, etc.) and can be bought or sold on a stock exchange just like regular shares.

In the cryptocurrency market, there has been ongoing discussion about launching crypto ETFs that follow the performance of assets like Bitcoin or Ethereum. This would allow investors to gain exposure to crypto price fluctuations without directly holding the coins—making it more convenient for those who only have access to traditional brokerage accounts.

Why Bitcoin and Ethereum?

1) Bitcoin (BTC)

Bitcoin is the number-one cryptocurrency by market capitalization and already has a relatively well-established derivatives market (futures and options). In fact, multiple Bitcoin Futures ETFs have been approved by the U.S. Securities and Exchange Commission (SEC) since 2021, and they’re actively traded today.

However, a Bitcoin Spot ETF still remains unapproved. Nevertheless, the filing of spot Bitcoin ETF applications by major asset managers—such as BlackRock—in 2023 has sparked optimism that approval may not be too far off.

2) Ethereum (ETH)

Ethereum follows Bitcoin in market cap and serves as the leading platform for smart contracts and decentralized applications (dApps). Its futures market has also seen robust growth, and several Ethereum Futures ETFs received approval in the U.S. during the latter half of 2023.

A Spot Ethereum ETF is widely seen as the next likely candidate following a potential Spot Bitcoin ETF approval. Ethereum enjoys steady institutional demand and could be recognized—like Bitcoin— as a 'commodity' by the Commodity Futures Trading Commission (CFTC). This regulatory clarity is a key reason why many experts believe Ethereum could be next in line.

What About Other Altcoins?

Beyond Ethereum, coins like XRP, Litecoin, and Bitcoin Cash are often mentioned. However, in terms of regulatory clarity, institutional demand, and market capitalization, they still lag behind Bitcoin and Ethereum. Additionally, ongoing SEC lawsuits and potential security classifications add further complexity, making near-term ETF approvals for these altcoins less likely.

Conclusion

In summary, the most probable candidates for ETF approval in the crypto space are Bitcoin and Ethereum. Both already have Futures ETFs on the market, and institutional players have been filing for Spot ETF products. Should a Spot Bitcoin ETF get the green light from the SEC, Ethereum will likely follow suit.

With regulatory frameworks shifting toward greater oversight and investor protection, the crypto market continues its evolution from high-speculation territory to a more structured and institution-friendly environment. This transformation is likely to offer both new opportunities and increased security for investors. Keep a close eye on upcoming SEC decisions and developments in global financial markets for more insights into the future of crypto ETFs.

#Crypto #ETF #Bitcoin #Ethereum #BTC #ETH #SEC #Investing #CryptoInvesting #SpotETF #FuturesETF #CoinMarket #DigitalAssets