- Bloomberg analysts predict that Litecoin and Hedera ETFs will likely be approved before Solana and XRP ETFs due to their non-security status.
- Meanwhile, Litecoin and Hedera have seen significant price gains, surging 28% and 142% respectively.
The crypto market is eagerly awaiting the approval of new crypto ETFs. Notably, since the launch of 11 Bitcoin ETFs early in January this year and the following launch of ETH ETFs, asset manager firms have submitted proposals for crypto ETFs including XRP, Solana, Litecoin, and Hedera.
In light of this, the crypto market is awaiting the potential approval of new crypto ETFs, particularly for Litecoin and Hedera. According to Bloomberg analysts, these ETFs could be approved before their Solana and XRP counterparts.
Eric Balchunas and James Seyffart, prominent Bloomberg analysts, shared their predictions on the evolving crypto ETF landscape. In an X post, Balchunas highlighted that Litecoin and Hedera ETFs might be next in line after Bitcoin and Ethereum combo ETFs, which have seen significant success in the market. Recent filings by Bitwise, Franklin Templeton, and Hashdex indicate a growing interest in offering dual Bitcoin-Ethereum ETFs, with Bloomberg forecasting a wave of crypto ETFs in 2025.
Balchunas noted that Litecoin and Hedera ETFs are likely to follow the Bitcoin-Ethereum pairs, outpacing potential ETFs for Solana and XRP. Seyffart elaborated that the regulatory status of Litecoin and Hedera makes them favorable candidates for approval, as neither has been labeled as securities by the SEC.
Meanwhile, Litecoin is on the green as it is swapping hands with $120.70 marking a 2.70% surge in the past 24 hours. Additionally, the asset has also recorded gains of 8.81% and 31.66% in the past week and month respectively.
On the other hand, HDAR has been the biggest gainer. At the time of press, HDAR is exchanging hands with $0.2948Â after a 2.61%. Notably, the asset has also surged by 4.01% and 161.71% in the past week and month respectively.
Solana and XRP Face Legal Hurdles
In contrast, the road for Solana and XRP ETFs appears more complex. Seyffart pointed out that the SEC’s legal stance on these assets, particularly XRP, creates significant obstacles. XRP is at the center of a long-standing legal battle between Ripple and the SEC over its classification as a security. While Ripple has achieved partial victories, uncertainty persists, and analysts predict that an XRP ETF would require a shift in SEC leadership before gaining approval.
Solana, too, faces regulatory ambiguity, which complicates its ETF prospects. Applications for Solana ETFs from firms like Grayscale, VanEck, and Bitwise remain under review, but legal clarity on its status is needed before progress can be made.
Despite the higher odds of approval for Litecoin and Hedera ETFs, analysts remain skeptical about the actual demand for these products. Currently, Canary Capital is the sole asset manager to file for Litecoin and Hedera ETFs, indicating limited confidence among issuers. In contrast, XRP and Solana have drawn interest from major players like Bitwise, 21Shares, and WisdomTree, which have all filed ETF applications.
