- Bloomberg analysts predicted Litecoin and Hedera ETFs may launch earlier than Solana and XRP.
- Delays in Solana and XRP ETFs spotlight regulatory challenges and the affect of upcoming SEC management modifications.
In a stunning improvement, Bloomberg’s ETF analysts, together with Eric Balchunas and James Seyffart, have predicted that Litecoin [LTC] and Hedera [HBAR] ETFs may launch earlier than Solana [SOL] and Ripple’s XRP ETFs.
Their insights are based mostly on the rising classification of Litecoin as a commodity and Hedera’s standing as a non-security. Each of those contribute to a extra favorable regulatory atmosphere.
Bloomberg analysts spill the beans
Taking to X [formerly Twitter], Balchunas referred to Seyffart’s outlook, stating,
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once.”
He additional make clear the potential timeline for cryptocurrency ETF approvals.
The analyst emphasised that Bitcoin [BTC] and Ethereum [ETH] combo ETFs are more likely to obtain approval first as a consequence of their classification as commodities.
This aligns with the broader regulatory perspective that views these main cryptocurrencies as much less more likely to face stringent safety considerations in comparison with newer or extra controversial property.
Balchunas added,
“First out is likely the btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending lawsuits).”
What’s extra?
That being mentioned, in his outlook, Seyffart additionally drew consideration to the SEC’s rejection of a number of Solana ETFs on the seventh of December.
He highlighted that each ETFs would require additional consideration underneath the upcoming management of President-elect Donald Trump’s SEC chair decide earlier than they’re significantly evaluated.
This means a possible shift in how these property are handled in regulatory discussions as soon as a brand new chair takes the helm.
Commenting on the matter, Litecoin replied,
“Sooner or later people will realize I’m THE digital silver for the world. Enough of this playing around already.”
For these unaware, XRP and SOL have been categorized as securities by the SEC. Moreover, Ripple has been engaged in a chronic authorized battle over XRP’s standing.
Whereas analysts level to larger approval odds for HBAR and LTC, uncertainty stays about investor demand.
Seeing this, many crypto consultants anticipate the SEC underneath Trump’s administration to undertake a extra supportive stance in direction of crypto property.
How will Trump’s rule change the crypto panorama?
Nonetheless, issues nonetheless appear constructive for SOL and XRP ETFs. Canary Capital’s current submitting for a U.S. spot XRP ETF highlights the rising curiosity in cryptocurrency ETFs.
This follows Bitwise’s comparable software and a rising wave of firms, together with VanEck and Grayscale Investments, submitting for Solana ETFs.
Nonetheless, current experiences counsel that SOL ETFs could face rejection as a consequence of considerations over their asset classification as a safety.
Due to this fact, ambiguity surrounding Solana’s standing, coupled with the SEC’s scrutiny, has created uncertainty for Solana ETF approvals this yr.
