As a seasoned crypto investor with over a decade of experience in this dynamic market, I find myself closely watching the developments surrounding altcoin ETFs. Having navigated through numerous bull and bear markets, I can confidently say that the upcoming decisions by regulatory authorities could significantly impact the landscape of our beloved industry.
In 2025, as the cryptocurrency community eagerly waits for decisions on altcoin exchange-traded fund (ETF) applications, market experts predict that certain assets may be approved ahead of others, given their higher likelihood of gaining approval early on.
According to Eric Balchunas’ tweet, U.S. regulatory bodies might give the green light to exchange-traded funds (ETFs) based on Litecoin (LTC) and Hedera (HBAR) before giving approval for ETFs linked to Ripple (XRP) and Solana (SOL).
LTC and HBAR ETFs Likely Launched First
Balchunas predicts that the financial market may soon introduce exchange-traded funds (ETFs) that bundle bitcoin (BTC) and ether (ETH), as these cryptocurrencies already have established spot ETF markets with significant inflows totaling in billions. Consequently, he suggests that it’s more probable for these crypto assets to be listed first due to their pre-existing market structures.
It’s more likely for Litecoin (LTC) to be approved for ETFs because it was born as a spin-off of the Bitcoin blockchain. The U.S. Securities and Exchange Commission (SEC) has categorized numerous altcoins as securities, thus subjecting them to relevant regulations over time. However, Litecoin has managed to escape this classification.
In many legal actions the SEC has brought against cryptocurrency companies, HBAR, like LTC before it, has managed to avoid being classified as a security. Consequently, neither LTC nor HBAR are implicated in ongoing disputes between the SEC and crypto firms. Given this history, it’s reasonable to assume that the SEC would view both LTC and HBAR more as commodities than securities.
Why Not XRP ETFs?
From my perspective as an analyst, the idea of XRP Exchange Traded Funds (ETFs) seems rather unrealistic, given the ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple Labs, the creators of the XRP Ledger.
Since 2020, Ripple has been embroiled in a legal dispute with the SEC concerning whether XRP is classified as a security. Furthermore, XRP has appeared as an issue in various ongoing lawsuits due to its classification as a security.
As a researcher delving into the intricacies of the cryptocurrency market, I’ve been following the ongoing classification debate surrounding XRP. Despite a court ruling last year that classifies XRP as a security when sold to institutional investors, there’s a glimmer of hope on the horizon. Analyst James Seyffart from Bloomberg hinted at the potential for XRP ETFs, provided the intricate legal issues surrounding the coin are resolved. His ETF outlook report suggests that this resolution may occur when the new SEC administration takes office in 2025.
Simultaneously, some applications for Solana-based ETFs have been turned down lately, with experts connecting this trend to the coin being categorized as a security.
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2024-12-18 16:34