Journalist
Posted:
- Bloomberg analysts predicted that Litecoin and Hedera ETFs could launch before Solana and XRP.
- Delays in Solana and XRP ETFs highlight regulatory challenges and the impact of upcoming changes in SEC leadership.
In a surprising development, Bloomberg 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 Litecoin’s growing classification as a commodity and Hedera’s status as a non-security product. Both contribute to a more favorable regulatory environment.
Bloomberg analysts shine the light
On the way to X [formerly Twitter]Balchunas referred to Seyffart’s view, to report,
“We expect a wave of cryptocurrency ETFs next year, although not all at once.”
He further shed light on the possible timeline for approval of cryptocurrency ETFs.
The analyst emphasized that Bitcoin [BTC] and ether [ETH] combo ETFs are likely to be approved first due to their classification as commodities.
This aligns with the broader regulatory perspective that believes these leading cryptocurrencies are less likely to face stringent security concerns compared to newer or more controversial assets.
Balchunas added,
“First will probably be the btc + eth combo ETFs, then probably Litecoin (bc the fork of btc = commodity), then HBAR (bc not labeled as a security) and then XRP/Solana (which have been labeled as securities in ongoing lawsuits). ”
What’s more?
That being said, in his prospects, Seyffart also drew attention to the SEC’s Dec. 7 rejection of multiple Solana ETFs.
He emphasized that under the incoming leadership of SEC Chairman-elect Donald Trump, both ETFs will require further consideration before being seriously evaluated.
This signals a possible shift in how these assets are treated in regulatory discussions once a new chairman takes over.
In response to the issue, Litecoin replied,
“Sooner or later people will realize that I am THE digital silver for the world. There’s enough of this kind of stuff going on already.”
For those who don’t know, XRP and SOL are classified as securities by the SEC. Furthermore, Ripple has been embroiled in a lengthy legal battle over the status of XRP.
While analysts point to higher approval odds for HBAR and LTC, uncertainty remains about investor demand.
Given all this, many crypto experts expect the SEC to take a more supportive stance toward crypto assets under the Trump administration.
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 US spot XRP ETF highlights the growing interest in cryptocurrency ETFs.
This follows Bitwise’s similar filing and a growing wave of companies, including VanEck and Grayscale Investments, filing for Solana ETFs.
However, recent reports indicate that SOL ETFs may be rejected due to concerns about the classification of their assets as securities.
Therefore, the uncertainty surrounding Solana’s status, coupled with SEC scrutiny, has created uncertainty about the approval of Solana ETFs this year.