An ETF, or Exchange-Traded Fund, allows investors to gain exposure to a basket of assets like cryptocurrencies without directly managing them, thus bridging traditional finance and crypto markets.

The rise of crypto ETFs is expected to increase the accessibility of cryptocurrency investments for retail investors, while also introducing risks associated with market volatility and regulatory changes.

Ethereum ETFs, following Bitcoin's lead, saw their first approvals in mid-2024, with a total funding scale of around $6 billion for nine approved ETFs as of March 2025.

Bitcoin ETFs have seen a long approval journey since 2013, with 11 spot Bitcoin ETFs now trading, having gained significant investor interest and a total net asset value of approximately $100 billion as of March 2025.

The U.S. SEC's evolving stance on cryptocurrency ETFs, particularly under Trump's administration, suggests potential for increased approvals, especially for Bitcoin and Ethereum, which have already launched ETFs.

The SEC imposes strict approval standards for crypto ETFs, focusing on market manipulation risks, asset liquidity, and transparency, which must be demonstrated by applicants.

The SEC's ongoing legal disputes with Ripple regarding XRP and its uncertain classification as a security complicate the approval process for XRP ETFs.

Several cryptocurrencies, including XRP, Solana, and Litecoin, are in the running for ETF approvals, with varying degrees of regulatory hurdles and market interest influencing their prospects.

Litecoin is viewed positively for ETF approval due to its commodity-like characteristics, with predictions of potential approval by mid-2025.

Spot ETFs hold the actual underlying assets and reflect their market price, while futures ETFs invest in contracts and can deviate in price, influencing market behavior differently.

The future of crypto ETFs may include innovative strategies and a broader range of asset classes, signaling a deeper integration of cryptocurrencies into mainstream finance and investment portfolios.