Bloomberg Intelligence analyst James Seyffart has reflected on the remarkable success of spot Bitcoin (CRYPTO: BTC) ETFs and the potential problems in altcoin ETF approvals in 2025.
What Happened: In a recent Blockworks Macro episode, Seyffart pointed out four Bitcoin ETFs now rank in the top 20 ETF launches of all time, with iShares’ (NASDAQ:IBIT) leading the way.
He highlighted these ETFs attracted $37 billion in net inflows in their first year, far exceeding initial estimates of $15-20 billion.
Seyffart also noted the promising launch of Bitcoin ETF options, which could pave the way for a robust ecosystem of derivative ETF products.
Altcoin ETFs: ';When, Not If'
While optimistic about altcoin ETF approvals under a more crypto-supportive administration, Seyffart warned that the process would likely face delays.
He emphasized that approval is a matter of “when, not if,” but hurdles remain, particularly for assets like Solana (CRYPTO: SOL), which the SEC has previously labeled as securities.
Seyffart added that regulatory headwinds, while easing under new leadership, could still slow down altcoin ETF timelines.
Also Read: Bitcoin ETFs Enter 2025 After Massive First Year
Challenges in Altcoin ETF Approval
- Lack of Futures Contracts: Unlike Bitcoin and Ethereum ETFs, which benefited from CME futures contracts, altcoins like Solana lack similar instruments. The SEC may need to rely on Surveillance Sharing Agreements (SSAs) with exchanges, complicating the approval process.
- SEC Litigation and Classification: Ongoing lawsuits against crypto exchanges and the SEC's classification of some altcoins as securities add another layer of complexity. Solana ETF filings, for instance, have faced indirect denials, with the SEC refraining from acknowledgment due to internal conflicts.
Seyffart suggested that while new leadership might expedite approvals, a more realistic timeline involves a 240–260 day review period. He remains optimistic about the future regulatory environment for crypto products, anticipating fewer headwinds in 2025.
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