With talks ramping up about potential alternative cryptocurrency ETFs in 2025, Litecoin [LTC] seems to be taking the lead in terms of the probability of regulatory approval.
Litecoin ETF in the Limelight Among Altcoin ETFs
According to analysts at Bloomberg ETF, James Seyffart and Eric Balchunas, the chances of the U.S. Securities and Exchange Commission (SEC) approving a spot Litecoin ETF before the end of the year stands at 90%.
Litecoin is ahead of competitors such as Solana [SOL], Ripple [XRP], and Dogecoin [DOGE], which are estimated to have lower approval probabilities of 70%, 65%, and 75% correspondingly.
Established in 2011 as a swifter and more scalable substitute for Bitcoin [BTC], Litecoin functions on a comparable proof-of-work consensus mechanism, rendering it an enticing option for institutional investors.
With increasing positivity encircling crypto ETFs, the approval of a Litecoin ETF may establish a model for other alternative cryptocurrencies aspiring to gain wider acceptance.
Insights from Bloomberg Analysts
Expressing opinions on X (previously Twitter), Balchunas remarked,
“We have officially released the approval odds for altcoin ETFs. Litecoin is leading with a 90% chance, followed by Doge, Solana, and XRP. Currently, we are focusing on 33 Act $IBIT-like filings, but the possibility of futures or 40 Act entities with Cayman subsidiaries getting approval exists.”
Subsequently, Seyffart’s tweet mentioned,
“We are assigning relatively high approval odds across the spectrum, primarily concentrating on Litecoin, Solana, XRP, and Dogecoin for now.”
Despite anticipations of lesser investor interest, Seyffart proposes that a spot Litecoin ETF could still be feasible for fund providers, even with assets as humble as $50 million.
This optimism coincided with Litecoin’s price surge to $129.40, reflecting a 12.36% rise over the previous 24 hours, as reported by CoinMarketCap.
Adding to the speculation, Polymarket data suggests an 80% chance of a Litecoin ETF gaining approval in 2025, bolstering confidence in its regulatory prospects.
What Lies Ahead for Solana, XRP, and Others?
Meanwhile, uncertainties linger around Solana and XRP, as uncertainties persist regarding their security classifications.
Seyffart opines that the prospects of an XRP ETF advancing are slim until the SEC resolves the ongoing legal tussle with Ripple, leaving its regulatory future uncertain.
“It seems unlikely that an ETF will progress until the Ripple/XRP litigation with the SEC reaches a definitive resolution or conclusion. The SEC must navigate through that debacle.”
Seyffart further emphasizes this phase as a potential pivotal moment, hinting that Litecoin could emerge as the first altcoin beyond Bitcoin and Ethereum to secure ETF endorsement in 2025.
If this milestone materializes, it could reshape institutional attention towards alternative cryptocurrencies, further validating their standing in conventional financial markets.