Journalist
Posted:
- Bloomberg analysts predicted Litecoin and Hedera ETFs could launch before Solana and XRP.
- Delays in Solana and XRP ETFs highlight regulatory challenges and the impact of upcoming SEC leadership changes.
In a surprising development, Bloomberg’s ETF analysts, including Eric Balchunas and James Seyffart, have predicted that Litecoin [LTC] and Hedera [HBAR] ETFs could launch before Solana [SOL] and Ripple’s XRP ETFs.
Their insights are based on the growing classification of Litecoin as a commodity and Hedera’s status as a non-security. Both of these contribute to a more favorable regulatory environment.
Bloomberg analysts spill the beans
Taking to X [formerly Twitter], Balchunas referred to Seyffart’s outlook, stating,
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once.”
He further shed light on the potential timeline for cryptocurrency ETF approvals.
The analyst emphasized that Bitcoin [BTC] and Ethereum [ETH] combo ETFs are likely to receive approval first due to their classification as commodities.
This aligns with the broader regulatory perspective that views these leading cryptocurrencies as less likely to face stringent security concerns compared to newer or more controversial assets.
Balchunas added,
“First out is likely the btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending lawsuits).”
What’s more?
That being said, in his outlook, Seyffart also drew attention to the SEC’s rejection of multiple Solana ETFs on the 7th of December.
He highlighted that both ETFs will require further consideration under the upcoming leadership of President-elect Donald Trump’s SEC chair pick before they are seriously evaluated.
This indicates a potential shift in how these assets are treated in regulatory discussions once a new chair takes the helm.
Commenting on the matter, Litecoin replied,
“Sooner or later people will realize I’m THE digital silver for the world. Enough of this playing around already.”
For those unaware, XRP and SOL have been classified as securities by the SEC. Furthermore, Ripple has been engaged in a prolonged legal battle over XRP’s status.
While analysts point to higher approval odds for HBAR and LTC, uncertainty remains about investor demand.
Seeing this, many crypto experts expect the SEC under Trump’s administration to adopt a more supportive stance towards crypto assets.
How will Trump’s rule change the crypto landscape?
However, things still seem positive for SOL and XRP ETFs. Canary Capital’s recent filing for a U.S. spot XRP ETF highlights the growing interest in cryptocurrency ETFs.
This follows Bitwise’s similar application and a growing wave of companies, including VanEck and Grayscale Investments, filing for Solana ETFs.
However, recent reports suggest that SOL ETFs may face rejection due to concerns over their asset classification as a security.
Therefore, ambiguity surrounding Solana’s status, coupled with the SEC’s scrutiny, has created uncertainty for Solana ETF approvals this year.
