2025 Crypto ETF Review: Bitcoin, Ethereum Flourish, and More Coins Like XRP Join the Feast

Article by: André Beganski

Translation by: Block unicorn

Although asset management firms have previously strived to launch products tracking spot prices of Bitcoin and Ethereum, the regulatory environment has begun to shift with President Trump returning to the White House in January, leading many to foresee new opportunities in 2025.

According to Farside Investors data, as of December 15, since the historic launch of spot Bitcoin ETFs in January 2024, they have accumulated a net inflow of $57.7 billion. Compared to $36.2 billion at the beginning of this year, this represents a 59% increase. However, capital inflows have not been consistently stable.

For example, CoinGlass data shows that on October 6, when Bitcoin’s price approached a new high of nearly $126,000, investors poured into spot Bitcoin ETFs, with inflows reaching $1.2 billion. A few weeks later, on November 11, as Bitcoin’s price fell below the $90,000 mark, investors withdrew $900 million from these funds.

However, this was only the second-worst single-day performance in the history of spot Bitcoin ETFs: in February this year, due to concerns over trade and inflation, Bitcoin’s price plummeted, resulting in a $1 billion outflow from these products.

CoinGlass data indicates that since their launch last July, spot Ethereum ETFs have accumulated a net inflow of $12.6 billion as of December 15. In August, as Ethereum’s price surged to a new high of nearly $4,950, these products saw a single-day inflow of $1 billion.

As institutional acceptance of these products continues to grow, they largely operate behind the scenes, as the public is more focused on future ETF products that could potentially drive up digital asset prices or expand channels for new investors. However, some are relatively focused on ETFs that track multiple cryptocurrencies simultaneously, believing these products are very suitable for institutional investors.

Establishing Common Standards

In September, the U.S. Securities and Exchange Commission (SEC) approved general listing standards for commodity trusts, aiming to respond to months of growing anticipation.

The SEC faces a mountain of ETF applications covering various digital assets on its desk, with the key approval criterion being a question the SEC’s previous leadership has avoided for years: when should digital assets be considered commodities?

The SEC is no longer forced to decide on the eligibility of each cryptocurrency (from Dogecoin to meme coins of presidents) on a case-by-case basis but has instead established exchange standards to ensure digital assets meet the requirements of commodity trusts.

The most important factors include: the digital asset supported by the ETF must be traded on a regulated market, have at least six months of futures trading history, or already support an ETF and hold substantial related assets.

Bloomberg senior ETF analyst Eric Balchunas told Decrypt in September that this means at least a dozen cryptocurrencies could be “immediately launched.” He considers this move to be in line with expectations.

Bloomberg senior research analyst James Seyffart recently stated on X that the approval of general listing standards will greatly expand the number of investable products for investors, but asset management firms are still waiting for approval results for at least 126 ETFs.

These applications mainly focus on tokens from emerging decentralized finance projects like Hyperliquid, and some relatively new meme coins such as Mog.

XRP and Solana

First Bitcoin, then Ethereum. Now, U.S. investors can buy ETFs tracking the spot prices of XRP and Solana, along with other cryptocurrencies.

XRP and Solana rank fifth and seventh in market capitalization, respectively. During the Biden administration, both faced regulatory hurdles, but as they became underlying assets for many products, these obstacles have gradually dissipated.

Last year, the launch of Bitcoin spot ETFs sparked a demand surge, pushing Bitcoin’s price to new highs. While other smaller cryptocurrencies have not experienced the same, ETFs specifically tracking XRP and Solana have still performed well.

“I think their impact on prices may not have met expectations, but in terms of their uniqueness, they have achieved great success and validated investor interest beyond Bitcoin and Ethereum,” Juan Leon, senior investment strategist at Bitwise, told us.

Leon said that when Solana and XRP ETFs launched in November, the timing was “unfavorable” because macroeconomic conditions in recent months had led to declines in digital asset prices.

Nevertheless, according to CoinGlass data, as of December 15, the spot Solana ETF has received a net inflow of $92 million since its launch. The spot XRP ETF launched the same month has attracted about $883 million in net inflows since trading began.

The launch of Solana ETFs is also notable because they are among the first to share a portion of staking rewards with investors. Last month, the U.S. Department of the Treasury and the IRS issued new guidelines further promoting this development.

BlackRock, the world’s largest asset manager, has yet to expand its crypto product line into other assets. However, Leon pointed out that the XRP and Solana communities may not need these companies.

“We see from ETF operations that the participation, strength, and scale of these communities far exceed many expectations,” he said. “I believe this is a good sign for the development of these two ecosystems in 2026.”

According to SoSoValue data, as of December 15, the net inflow for the spot Dogecoin ETF was $2 million.

Index Wars?

Gerry O’Shea, head of global market insights at Hashdex Asset Management, believes that in 2025, individual investors and hedge funds are the most likely groups to hold spot crypto ETFs, but this pattern may soon undergo a significant shift.

He told us that many advisors and professional investors are still conducting due diligence on crypto-tracking ETFs, but he feels they may soon start seriously considering allocating to such assets.

Additionally, Vanguard announced earlier this month that it will allow its 50 million clients to trade certain spot crypto ETFs on its brokerage platform. Meanwhile, U.S. banks have also approved private wealth clients to moderately allocate to cryptocurrencies starting next year.

“About a year ago, there was a lot of regulatory uncertainty, and they weren’t really ready to step into this space,” he said. “Now, the question is no longer whether they should invest, but how they should invest.”

In this context, O’Shea believes that ETFs tracking digital asset indices will become a hot topic next year. He said many professional investors appreciate the characteristic of these funds’ holdings changing over time, which makes them relatively reassuring.

O’Shea explained: “They can allocate to index ETFs to broadly participate in market growth potential without needing to master all the details. They don’t need to know everything about each specific asset.”

In February, Hashdex launched the first U.S. spot ETF tracking multiple digital assets—the Hashdex Nasdaq Crypto Index ETF. This ETF is modeled after the Nasdaq Crypto Index and holds cryptocurrencies like Cardano, Chainlink, and Stellar, among others.

Fidelity, Grayscale, Bitwise, 21Shares, and CoinShares have also launched similar products, some of which invest in digital assets via derivatives. According to ETF Trends data, this index ETF offers investment opportunities across 19 digital assets.

While some U.S. pension funds have purchased spot Bitcoin ETFs, the Wisconsin Investment Board liquidated $300 million worth of holdings around February. This move was disclosed through quarterly 13F filings by large institutional investors.

Al Warda Investments disclosed holding a $500 million position in BlackRock’s spot Bitcoin ETF in November. This investment firm is linked to the Abu Dhabi Investment Council (a subsidiary of Mubadala Investment Company), which is Abu Dhabi’s sovereign wealth fund.

Mubadala Investment Company itself disclosed holding a position in BlackRock’s product in February, valued at $567 million according to its latest 13F filing. Around the same time, Harvard University’s endowment fund held shares of this ETF worth $433 million.

Brown University and Emory University also disclosed holdings in spot Bitcoin ETFs this year, becoming some of the earliest institutional adopters of this asset. Analysts generally believe that this shift among investors could reduce Bitcoin’s volatility and decrease its drawdowns.

“Although the change isn’t dramatic, it is worth noting,” O’Shea said when discussing the expansion of investment fundamentals. “This shift from retail to institutional investors is very beneficial for the long-term sustainability of assets like Bitcoin because these institutional investors have a longer-term investment horizon.”