Why Bitcoin ETFs were just the beginning — new funds featuring memecoins and leverage are coming

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Presto Research says crypto ETFs are poised to grow offerings successful 2025.
Hybrid ETFs look to blend Bitcoin with stocks, gold, and firm bonds.
Crypto ETFs volition way the improvement of stock-based funds, experts say.

Brace yourselves.

If 2024 was the twelvemonth of the Bitcoin spot terms ETF past 2025 volition beryllium the twelvemonth erstwhile a question of acold much exotic offerings hits the market.

Think memecoins, AI tokens, and leverage.

“Crypto is connected the verge of a translation akin to the emergence of the S&P 500 successful equity markets,” Presto Research analysts wrote successful their end-of-year recap and prediction report.

New funds

New funds volition cater to a increasing request for diversified crypto vulnerability and people sectors specified arsenic AI tokens, memecoins, and Bitcoin-heavy firm strategies.

The thought is that a broader scope of ETF offerings volition alteration investors to plan much bespoke crypto portfolios. That’s however it works successful stock-based ETFs.

The leap would people the adjacent evolutionary measurement for a marketplace that is coming up connected the one-year day of the spot terms Bitcoin ETFs successful the US.

Eleven of them were approved successful January portion Ethereum ETFF approvals followed successful May. And they’ve already raked successful tens of billions of dollars successful inflows.

Gaining traction

BlackRock’s iShares Bitcoin Trust manages much than $23 billion successful nett assets. In fact, retired of the year’s 740 caller ETFs, “the apical 8 are present crypto-related,” wrote ETF Store President Nate Geraci.

With crypto projects processing chiseled usage cases and sector-specific dynamics, Presto Research analysts foretell that index-based ETFs volition summation traction successful 2025.

They highlighted a displacement from investors chasing idiosyncratic tokens to those seeking broader vulnerability to circumstantial niches similar AI and memecoins.

These types of products were improbable to beryllium approved nether SEC Chair Gary Gensler, known for his assertive enforcement against crypto.

However, President-elect Donald Trump’s prime to caput the agency, Paul Atkins, is simply a erstwhile SEC commissioner with beardown crypto ties. He is expected to foster a much supportive regulatory environment.

In the works

Issuers are already starting to experimentation with hybrid ETFs that blend crypto with accepted fiscal instruments.

ProShares has proposed products similar the S&P 500 Bitcoin ETF and the Gold Bitcoin ETF, which harvester Bitcoin-denominated returns with established plus classes.

Another illustration is the projected REX Bitcoin Corporate Treasury Convertible Bond ETF, designed to put successful bonds issued by Bitcoin-focused companies similar MicroStrategy and MARA Holdings.

Geraci described these arsenic “BTC hedged ETFs,” calling them grounds that “Bitcoin is starting to devour accepted finance.”