Solana and XRP ETFs Likely in 2025

CRYPTO
Solana and XRP ETFs Likely in 2025

Bloomberg analysts Eric Balchunas and James Seyffart predict Solana and XRP will be among the next cryptocurrencies approved for exchange-traded funds (ETFs) in 2025. This anticipated wave of crypto ETFs comes as a potential leadership shift in the Securities and Exchange Commission (SEC) under President-elect Donald Trump signals greater openness to spot crypto ETFs.

Spot ETFs track the price of cryptocurrencies without requiring direct ownership, offering investors an accessible way to enter the crypto market. Balchunas highlighted that Solana and XRP have gained traction as the next likely candidates for ETFs, stating their odds “went from a snowball’s chance in hell to pretty decent when Trump won.”

However, SEC lawsuits labeling Solana and XRP as unregistered securities may delay their approval, as current laws bar such assets from commodity-based ETFs. Analysts believe the SEC could reclassify these cryptocurrencies as commodities under Trump’s administration, especially with crypto advocate Paul Atkins rumored to lead the agency.

While Bitcoin and Ethereum ETFs have performed well, Balchunas cautions that altcoin ETFs may struggle to attract significant investor interest. “Bitcoin will utterly dominate this category,” he said, projecting Bitcoin could control three-quarters of crypto ETF assets in the coming years. Major firms like Grayscale and Wisdom Tree have already applied for additional crypto ETFs.

FINANCE
Fed Cuts Spark Market Selloff

The stock market fell sharply after the Federal Reserve hinted at fewer rate cuts in 2025, rattling investor confidence. The Dow Jones dropped 2.6%, the Nasdaq fell 3.5%, and the S&P 500 slid 2.9%. The Fed’s revised projections included a higher terminal interest rate of 3% and an inflation forecast of 2.5% for 2025, signaling a cautious approach to rate reductions until inflation eases further.

Brian Albrecht, chief economist at the International Center for Law and Economics, attributed the market’s reaction to fears of persistent inflation. BlackRock’s Rick Rieder noted that the Fed’s shift marks a new phase in the rate-cutting cycle, with fewer reductions expected compared to prior quarters.

The Fed’s dot plot now forecasts two rate cuts instead of four, while incoming President-elect Donald Trump’s policies on immigration and trade could introduce additional economic uncertainty, further complicating the inflation outlook.

FINANCE
Barclays Traders, Bankers See Boost

Barclays Plc is preparing to raise annual bonuses for traders and investment bankers by as much as 20% after a strong year in markets. Traders are expected to see a 5%-10% increase in bonuses, while those in debt and equity capital markets could see payouts rise 10%-20%, according to insiders.

Final decisions are still being made, but the bank’s investment division is poised for better rewards after last year’s disappointing performance, when bonuses fell 43% due to weak dealmaking. Barclays’ strong performance in 2024, including doubled advisory revenue in Q3 and higher-than-expected trading income, has set the stage for the increase.

This aligns with broader Wall Street trends, where capital markets professionals are expected to see bonus hikes of up to 35%, according to industry analysts. Barclays’ CEO C.S. Venkatakrishnan continues to push forward a plan to boost returns, reflecting improved market conditions.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.