Nate Geraci Predicts What to Watch in 2025
ETF Store President Nate Geraci outlines five bold predictions for the cryptocurrency exchange-traded fund (ETF) market in 2025.
Geraci shared his insights into X (formerly Twitter), highlighting key advancements that could shape the market. Here’s a detailed breakdown of his predictions and what they mean.
Legal Teams Prepare for Busy Year, Geraci’s Crypto ETF Predictions
Geraci noted the heavy workload facing ETF legal teams in 2025. He echoed comments made by Franklin Templeton’s head of digital assets.
“It feels like ETF legal staff will be very busy in the first half of this year,” Geraci shared.
With the crypto ETF space poised for significant growth, Geraci shared five developments expected to make financial headlines.
Joint spot BTC and ETH ETF launched
Geraci is expected to launch a spot portfolio of Bitcoin and Ethereum ETFs, a move that appears imminent following recent regulatory milestones. According to BeInCrypto, the U.S. Securities and Exchange Commission (SEC) recently approved a Bitcoin and Ethereum Dual ETF Hashdex and Franklin Templeton, laid the foundation for the launch of this financial instrument.
These combined ETFs may attract a wider range of investors to participate, simplifying cryptocurrency exposure in a single product. In hindsight, ETF analyst Eric Balchunas predicted a possible launch in January 2025, reinforcing Geraci’s optimism.
“Probably launching in January. Their market cap weight is around 80/20 BTC/ETH. It’s worth noting that Hashdex and Frankie are number one. Good for them.” Balciunas shared December.
Spot ETH ETF Options Trading
Based on the momentum of Bitcoin spot ETF options trading, Geraci predicts that Ethereum spot ETF options will appear in 2025. The OCC (Office of the Comptroller of the Currency) recently Bitcoin ETF options trading approved The foundations have been laid for such developments.
BlackRock’s Bitcoin ETF options perform exceptionally well, sales Over $425 million on the first trading day. Likewise, Grayscale’s Bitcoin ETF options became available on November 21st. These two developments suggest that Ethereum’s inclusion may just be a matter of time.
Spot BTC and ETH ETF physical creation
Introducing physical creation and redemption mechanisms for spot BTC and ETH ETFs is another milestone envisioned by Geraci. This is as follows landmark SEC approves cash creation redemptions for Bitcoin ETFs in January and February Ethereum ETF in May.
The physical mechanism is expected to enhance liquidity and reduce costs, making ETFs more attractive to institutional investors. In hindsight, the debate between cash and physical became very heated in late 2023 as filers fought for Bitcoin ETF approval. SEC encourages ETFs to create cash rather than physical creation avoid Use an unregistered broker.
“The SEC is concerned about money laundering through physical creation in spot Bitcoin ETFs, which is why they only focus on cash creation (which is a more closed system),” Balchunas famous.
However, physical creation is considered better for investors due to interest rate differentials and tax implications. They are considered the better option as they offer the cleanest structure for issuers and end investors. Instead, cash redemptions force issuers to hold cash equivalents backing their ETFs.
“If 100 ETF shares equal 1 Bitcoin, then the ETF provider must always have the equivalent of 1 Bitcoin in cash. Making things even more difficult.” A user on X explained then.
Since physical creation is arguably better in terms of taxes and spreads, it’s understandable that issuers still prefer to push this policy.
Spot ETH ETF Pledge
Although the US SEC does not like the staking function of ETH ETF Gary GenslerUnder Geraci, that restriction may change. Initially, major players such as BlackRock and Fidelity Sacrifice staking capacity Securing the SEC.
In contrast, the European market has embraced staking ETPs, with products including Bitwise’s Solana Staking ETP Gain traction. If regulatory hurdles are lifted under pro-cryptocurrency governments, ETH ETF staking could become a reality.
point Sol ETF Approval
Geraci’s final prediction centered on the approval of one advertising spot Solana ETF. Although the SEC recently Stop new applications For the Solana ETF, a shift in the Trump administration’s regulatory stance could improve the odds. Trump’s pro-crypto stanceAs industry experts have highlighted, this points to a more favorable environment for new ETF products.
“The biggest win for Solana from a new Trump presidency will be our long-awaited ETF in 2025 or 2026. It’s no surprise that the incredible VanEck team, with support from 21Shares and Canary Capital, will be leading the charge.” explain Dan Jablonski, director of growth at news and research firm Syndica.
As the crypto-ETF ecosystem advances, Geraci’s prediction heralds a transformative era for digital asset investing to come. A confluence of regulatory advancements, institutional interest, and novel products make crypto ETFs a cornerstone of the financial ecosystem in 2025.
Disclaimer
follow trust project BeInCrypto is committed to fair and transparent reporting. This news article is designed to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on the content of this article. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
