Crypto ETF Wave 2025: Litecoin ETF More Likely to Succeed Than Solana or XRP

This article is machine translated
Show original
According to the analysis of ETF experts Eric Balchunas and James Seyffart, the likelihood of the SEC approving a or ETF sooner than a or ETF is very high. The two analysts also believe that a combined BTC-ETH ETF could be approved sooner than other funds. Balchunas predicted this in a social media post, citing an exclusive article by James Seyffart. Both have recently accurately predicted that MicroStrategy will join the NASDAQ 100. Although analysts generally expect a Solana ETF to be approved quickly, Balchunas has the opposite view: "We predict there will be a wave of crypto ETFs next year, although not all will be approved at the same time. First, it could be a combined BTC and ETH ETF, then Litecoin (as it is a fork of BTC and can be considered a commodity), followed by Hedera (as it is not considered a security), and finally XRP or Solana (as they face lawsuits over being considered securities)." Seyffart also noted that the was directly rejected by the SEC in December, and therefore the SEC will not consider new applicants until the next administration takes office. After President-elect Trump takes office, the SEC may have a more friendly view, but there is no guarantee they will revisit previously rejected applications. Instead, the analysts point out that Hashdex's BTC-ETH ETF, although delayed, has not been completely rejected and still has a chance of being approved. Both BTC and ETH have their own ETFs, so a joint product is feasible. However, they assert that a has the best chance of being approved next, thanks to the strong performance of this coin during the bull market. The analysts say that Litecoin is a fork of Bitcoin, which may help it qualify for an ETF under similar principles. Unlike most cryptocurrencies, the SEC considers BTC a commodity, and a similar rationale could apply to Litecoin. After this news, has risen nearly 6% in a day. The analysts also predict that a could be approved, as Canary Capital is the only entity that has filed for both a and a . ETF approval does not depend entirely on market appeal. Canary Capital is currently the only entity actively seeking a , and while there may not be enough investor demand, still maintains stability and growth potential. If the SEC approves a , the coin could attract more attention from the investment community. The overall outlook for crypto ETFs will depend on the leadership direction of the US government in the future. Greater clarity on token classification could be a turning point in the ETF context and open up opportunities for altcoins like and to participate in Bitcoin and Ethereum products. While 2025 could be a turning point for crypto ETFs beyond Bitcoin and Ethereum, analysts warn that legal uncertainty and weak investor demand for alternative crypto products could continue to limit development in the near future.

Source
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
Like
Add to Favorites
Comments