Nate Geraci’s Bold Predictions for Crypto ETFs in 2025
In the latest development, ETF Shop President Nate Geraci emphasized on X that crypto ETFs will continue to dominate headlines in 2025, highlighting their growing importance and influence in the market over time.
bold prediction
Geraci reiterated comments made by Franklin Templeton’s head of digital assets, who said “it feels like ETF legal staff will be busy in the first half of the year.”
Notably, he made five bold predictions for crypto ETFs in 2025. With the crypto ETF space expected to see dramatic growth, Geraci shared five developments expected to dominate financial headlines.
Joint spot BTC and ETH ETF launched
Geraci is looking forward to launching a Bitcoin and Ethereum ETF spot portfolio, which appears to be coming soon following recent regulatory milestones. Notably, the SEC recently approved Hashdex and Franklin Templeton’s dual Bitcoin and Ethereum ETFs.
The combined ETFs are expected to attract broader investor participation, simplifying cryptocurrency exposure in a single product. It is worth noting that Bloomberg ETF analyst Eric Balchunas previously predicted that it could be launched in January 2025.
“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 in 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’s (Office of the Comptroller of the Currency) recent approval of Bitcoin ETF options trading has laid the groundwork for such a development.
BlackRock’s Bitcoin ETF options performed exceptionally well, with first-day sales exceeding $425 million. 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
Secondly, Geraci is expected to introduce physical creation and redemption mechanisms for spot BTC and ETH ETFs. Prior to this, the SEC approved cash creation redemptions for the Bitcoin ETF in January and the ETH ETF in May.
Notably, the physical mechanism is expected to enhance liquidity and reduce costs, making ETFs more attractive to institutional investors. Physical creation is considered better for investors due to interest rate differentials and tax consequences. They are considered the better option as they offer the cleanest structure for issuers and end investors. However, cash redemptions force issuers to hold cash equivalents backing their ETFs.
Spot ETH ETF Pledge
Nate Geraci predicts that SEC restrictions on ETH ETF staking may change, as major players such as BlackRock and Fidelity initially sacrificed staking to gain SEC approval. The European market has accepted staking ETPs, and products such as Bitwise’s Solana staking ETP are becoming increasingly popular. If regulatory hurdles are lifted under pro-cryptocurrency governments, ETH ETF staking could become a reality.
Sol ETF
Geraci’s final forecast focuses on the approval of the spot Solana ETF. Although the SEC recently halted new applications for the Solana ETF, the Trump administration may improve the chances of approval as it proposes 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, ” noted Dan Jablonski, director of growth at news and research firm Syndica.
