Investors scramble as the race to launch the next ‘hot’ crypto fund heats up

Vendors of exchange-traded funds are crafting lucrative deals to appeal to investors and drive them closer to the cryptocurrency craze. With several ETFs lined up for launch in 2025, each firm is trying to put its best foot forward to appear on top of the chain.

In submissions made to the US Securities and Exchange Commission towards the end of 2024, very lucrative offers would excite investors. One of the unique proposals was an ETF from ProShares that would denote the S&P 500’s return in Bitcoin. Besides, funds managed by Strive Asset Management and REX Shares will enable convertible bonds by companies to purchase Bitcoin. Volatility Shares, an ETF firm, hopes to trigger Solana funds with a vessel that tracks it using futures products.

As more launches are anticipated, there are deliberate attempts to incorporate crypto strategies into ETFs. Most of these scenarios will be in play in 2025 because crypto is currently the hot thing, and issuers love to drop them when the theme is on fire.

Crypto ETFs are gaining traction out of their one-year existence

The US Bitcoin ETF and Ethereum ETF were only approved and launched last year. If the SEC approves all the filed applications for crypto ETFs, there will be more than a dozen crypto ETFs in 2025.

Cryptocurrency enjoyed a good ride in 2024, with Bitcoin growing more than 120% to trade above $100,000. The surge could be attributed to the US President-elect, Donald Trump, who has openly embraced cryptocurrency. The Trump administration is expected to loosen its regulatory stance regarding crypto, making digital assets grow accordingly.

The excitement surrounding Trump’s election helped to push annual inflows for the biggest Bitcoin ETF. BlackRock rose above  $37 billion for the year, ranking third among all funds.

Corporates are using a mix of new equity and sales of convertible bonds to buy more crypto

Some of the strategies that may dominate 2025 began last year. For instance, MicroStrategy co-founder Michael Saylor leveraged the surging crypto prices to double down on his Bitcoin purchase tactics, acquiring large tokens for its company reserve. The firm has used both new equity and sales of convertible bonds to help sponsor its crypto buying. Other entities have also laid down plans for their firms based on MicroStrategy’s style.

Fillings from REX ETF indicate that the firm wants to invest most of its assets in convertible bonds from companies that deal in Bitcoin. Also, according to paperwork filed last week, Strive is proposing to launch a fund that invests in derivatives such as swaps and options to get exposure to convertible securities issued by MicroStrategy or other companies with similar investment strategies.

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