A recent revelation from ETF analysts at Bloomberg, including Eric Balchunas and James Seyffart, suggests that Litecoin [LTC] and Hedera [HBAR] ETFs could potentially debut before Solana [SOL] and Ripple’s XRP ETFs.
These predictions are rooted in the increasing recognition of Litecoin as a commodity and the acknowledgement of Hedera as a non-security, which could lead to a more conducive regulatory landscape.
Insights from Bloomberg Analysts
On X (formerly Twitter), Balchunas shared Seyffart’s perspective, indicating,
“We anticipate a surge of cryptocurrency ETFs in the upcoming year, although not all at once.”
He also provided insights on the expected timeline for cryptocurrency ETF approvals.
Highlighting that ETFs combining Bitcoin [BTC] and Ethereum [ETH] are likely to be the first approved due to their classification as commodities.
This aligns with the prevailing regulatory sentiment that considers these major cryptocurrencies to be less prone to stringent security issues compared to newer or more contentious assets.
Balchunas mentioned,
“The initial offerings are likely to be the btc + eth combo ETFs, followed by Litecoin (due to its affiliation with btc = commodity), then HBAR (not deemed a security), and finally XRP/Solana (classified as securities in pending legal battles).”
Moving Forward
However, Seyffart noted the SEC’s denial of various Solana ETFs on December 7th in his analysis.
He emphasized that both ETFs will necessitate further evaluation under the upcoming leadership of the SEC chair selected by President-elect Donald Trump before they are seriously considered.
This signals a potential shift in how these assets are perceived in regulatory deliberations once a new chair assumes office.
Responding to these developments, Litecoin expressed,
“Sooner or later, people will recognize my status as THE digital silver globally. Enough of these games.”
It is noteworthy that XRP and SOL have been designated as securities by the SEC, with Ripple embroiled in an extensive legal dispute over XRP’s classification.
While analysts suggest higher approval probabilities for HBAR and LTC, uncertainties prevail regarding investor interest.
Many cryptocurrency experts anticipate the SEC under the forthcoming Trump administration to adopt a more favorable stance towards crypto assets.
Impact of Trump’s Administration on Crypto
Nonetheless, prospects appear promising for SOL and XRP ETFs. The recent application by Canary Capital for a U.S. spot XRP ETF underscores the mounting enthusiasm for cryptocurrency ETFs.
This move follows Bitwise’s similar filing and a growing trend of firms, such as VanEck and Grayscale Investments, seeking approval for Solana ETFs.
Despite this, recent indications suggest that SOL ETFs might face resistance owing to apprehensions over their classification as securities.
Hence, uncertainties surrounding Solana’s designation, along with the SEC’s scrutiny, have cast doubts on the approval of Solana ETFs this year.