Bloomberg Analysts Project Litecoin And Hedera ETFs To Lead Approval Process Over Solana And XRP

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• Bitcoin and Ethereum dual ETFs are expected to gain approval first, followed by Litecoin and Hedera ETFs.
• Legal obstacles surrounding Solana and XRP delay their ETF approval, with ongoing SEC cases affecting their status.
• Litecoin and Hedera ETFs face fewer regulatory hurdles, but market demand for these funds remains uncertain.

Bloomberg analysts Eric Balchunas and James Seyffart have indicated that ETFs based on Litecoin (LTC) and Hedera (HBAR) are more likely to receive regulatory approval ahead of funds tied to Solana (SOL) and XRP.

Their prediction stems from a thorough evaluation of the current landscape of crypto ETF filings and the regulatory hurdles associated with specific digital assets.

According to the analysts, Litecoin and Hedera enjoy clearer regulatory standing compared to Solana and XRP, which face ongoing legal scrutiny and ambiguous classification regarding their status as potential securities.

This relative regulatory clarity positions LTC and HBAR as stronger candidates for near-term approval by financial authorities.

Conversely, ETFs tied to Solana and XRP may encounter delays as regulators continue to assess the legal frameworks and compliance challenges surrounding these assets.

Balchunas and Seyffart highlight the cautious approach regulators are adopting, prioritizing ETFs based on digital assets with well-established track records and reduced legal uncertainties.

Sequential Approval Of Crypto ETFs

The analysts forecast that the SEC will initially focus on granting approval to Bitcoin and Ethereum dual ETFs.

Firms such as Bitwise, Franklin Templeton, and Hashdex have submitted applications for these combination funds, which aim to provide investors with diversified exposure to the top two cryptocurrencies.

Bitcoin ETFs have already gained traction in the market, with total holdings surpassing the amount attributed to Bitcoin’s creator, Satoshi Nakamoto.

Once Bitcoin and Ethereum ETFs are approved, Balchunas and Seyffart anticipate the next wave will include Litecoin and Hedera ETFs.

Challenges Facing Solana And XRP ETFs

The analysts underscore legal and regulatory barriers as key factors delaying approval for Solana and XRP ETFs. XRP’s status remains uncertain due to the ongoing legal battle between Ripple Labs and the SEC, which centers on whether the token qualifies as a security under U.S. law. Solana faces similar ambiguities, further complicating its prospects for an ETF launch.

In contrast, Litecoin and Hedera have not been classified as securities by the SEC, positioning them for a smoother regulatory review. However, the analysts caution that even with a higher probability of approval, market demand for funds linked to these assets remains unclear.

Limited Filings For Litecoin And Hedera

Currently, Canary Capital is the only issuer pursuing Litecoin and Hedera ETFs, signaling muted confidence in demand for these products. Meanwhile, applications for Solana and XRP ETFs have come from prominent firms like Grayscale, VanEck, and WisdomTree, reflecting broader interest despite the regulatory uncertainty surrounding these assets.

This projected sequence of ETF approvals highlights the interplay between regulatory clarity, issuer strategy, and market readiness.