Journalist
Posted:
- Bloomberg analysts estimated a 90% chance of SEC approval for a Litecoin ETF in 2025.
- Uncertainty lingers over Solana and XRP ETFs due to regulatory and legal challenges.
As discussions heat up around potential altcoin ETFs in 2025, Litecoin [LTC] appears to be leading the pack in regulatory approval odds.
Litecoin ETF steals the spotlight among altcoin ETF
Bloomberg ETF analysts James Seyffart and Eric Balchunas estimate a 90% probability that the U.S. Securities and Exchange Commission (SEC) will greenlight a spot Litecoin ETF before the year ends.
This puts Litecoin ahead of other contenders like Solana [SOL], Ripple [XRP], and Dogecoin [DOGE], which are projected to have lower approval chances of 70%, 65%, and 75%, respectively.
Created in 2011 as a faster and more scalable alternative to Bitcoin [BTC], Litecoin operates on a similar proof-of-work consensus mechanism, making it a compelling choice for institutional investors.
With growing optimism surrounding crypto ETFs, a Litecoin ETF could set a precedent for other altcoins seeking mainstream adoption.
Bloomberg analysts weigh in
Taking to X (formerly Twitter) Balchunas noted,
“Our official altcoin ETF approval odds are out. Litecoin leads w 90% chance, then Doge, followed by Solana and XRP. We are only doing for 33 Act $IBIT-esque filings. But def poss to see futures or Cayman-subsidiary type 40 Act stuff get through as well.”
This followed Seyffart’s tweet where he said,
“We’re putting out relatively high odds of approval across the board. Mainly focused on Litecoin, Solana, XRP, and Dogecoin for now.”
Despite expectations of lower investor demand, Seyffart suggests a spot Litecoin ETF could still be viable for fund issuers, even with assets as modest as $50 million.
This optimism comes as Litecoin’s price surged to $129.40. This marked a 12.36% increase in the past 24 hours, according to CoinMarketCap.
Further fueling speculation, Polymarket data indicates an 80% probability of a Litecoin ETF gaining approval in 2025, reinforcing confidence in its regulatory prospects.
What about Solana, XRP, and other ETFs?
Meanwhile, uncertainty looms over Solana and XRP, as their security classifications remain a point of contention.
Seyffart believes that an XRP ETF is unlikely to move forward until the SEC fully resolves its ongoing legal battle with Ripple, leaving its regulatory future in limbo.
“It’s our view. That until that WHOLE mess of litigation between Ripple/XRP and the SEC is settled and/or finished or has some sort of expected outcome etc etc — you likely won’t see an ETF. The SEC needs to untangle that mess.”
Seyffart further highlights this development as a potential turning point. He suggested that Litecoin could emerge as the first altcoin outside of Bitcoin and Ethereum to secure ETF approval in 2025.
If realized, this milestone could reshape institutional interest in alternative cryptocurrencies, further legitimizing their place in traditional financial markets.
