What’s Next After $100k Bitcoin? Crypto ETFs to Watch for in 2025

Canary Capital

Canary Capital, founded by Steven McClurg—who previously co-founded Valkyrie Funds, one of the 11 contenders for a spot Bitcoin ETF, and served as a managing director at Galaxy Digital Holdings — is a relatively new player punching well above its weight in the crypto ETF space.

The firm has made waves with filings for spot crypto ETFs targeting Solana (SOL), Litecoin (LTC), and Ripple (XRP)—three of the most notable altcoins by market cap after Ethereum.

Solana is known for its high-speed blockchain platform, ideal for decentralized finance (DeFi) applications and NFTs. Litecoin, often called the “silver to Bitcoin’s gold,” is a peer-to-peer cryptocurrency designed for faster transactions. Ripple’s XRP facilitates cross-border payments with minimal transaction fees and near-instant settlement times, making it popular in the global payments industry.

Canary Capital isn’t stopping there. The firm has also filed for the Canary HBAR ETF, which would track the Hedera Network’s native token, HBAR. Hedera is a blockchain alternative designed for enterprise use, offering high transaction speeds, low energy usage, and robust security for applications like supply chain tracking, digital identity, and tokenized assets.

Grayscale Investments

Grayscale Investments, after seeing some outflows from its flagship spot Bitcoin and Ethereum ETFs—originally converted from its closed-end trusts—to lower-cost competitors, has stabilized its position by launching “mini ETFs.” These spinoff funds allocate 10% of the AUM from their flagship ETFs, offering investors a lower-cost entry point.

The next move for Grayscale? The potential launch of a multi-crypto ETF via the conversion of its Grayscale Digital Large Cap Fund (GLDC). Currently a closed-end fund trading over the counter (OTC), GLDC charges a 2.5% management fee and tracks the CoinDesk Large Cap Select Index (DLCS), which holds Bitcoin, Ethereum, Solana, XRP, and Avalanche by market cap.

Supporting this effort is Grayscale’s extensive experience and established legal precedent in converting its closed-end trusts to ETFs. The firm spearheaded a successful legal challenge against the SEC that paved the way for spot ETFs. With Gary Gensler stepping down and new crypto-friendly leadership likely to emerge under the upcoming Trump administration, the firm could see favorable regulatory tailwinds.

What’s possible? Grayscale manages closed-end trusts for a wide range of digital assets, including Aave, Avalanche, Basic Attention Token, Bitcoin Cash, Chainlink, Filecoin, Litecoin, Solana, XRP, and more. Given their expertise and history, it wouldn’t be surprising to see one or more of these converted into ETFs in the near future.

Bitwise Asset Management

Bitwise Asset Management is another major player eyeing the multi-crypto ETF segment. The firm has filed for an ETF based on its existing closed-end Bitwise 10 Crypto Index Fund (BITW).

One of the biggest benefits of converting BITW into an ETF would be resolving its current discount/premium to net asset value (NAV).

As of December 4, BITW is trading at a market price of $66.40, while its NAV stands at $72.54. Converting to an ETF structure could eliminate this inefficiency, allowing the fund to trade more closely in line with its underlying assets.

If the ETF stays consistent with the current fund, it would likely track the Bitwise 10 Large Cap Crypto Index. This index includes the 10 most highly valued cryptocurrencies, weighted by market capitalization and rebalanced monthly. The current weights are as follows:

1.       Bitcoin: 70.1%

2.       Ethereum: 16.2%

3.       XRP: 5.5%

4.       Solana: 4.0%

5.       Cardano: 1.6%

6.       Avalanche: 0.8%

7.       Chainlink: 0.6%

8.       Polkadot: 0.5%

9.       Bitcoin Cash: 0.4%

10.   NEAR Protocol: 0.3%

The closed-end BITW fund currently charges a steep 2.5% expense ratio. If converted to an ETF, it’s reasonable to expect a lower fee, which would make it more appealing to cost-conscious investors.

One wrinkle with BITW is its current tax reporting. The fund issues a Schedule K-1, a tax document that can complicate filing for some investors by reporting income, gains, or losses from partnerships. It will be interesting to see if Bitwise adjusts the structure for the ETF version to avoid this.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.