Bloomberg analysts James Seyffart and Eric Balchunas have assessed the approval odds for altcoin-based exchange-traded funds (ETFs) in 2025.
Advantages of Litecoin for ETFs
Seyffart believes that a Litecoin-based fund has the highest approval odds, as the U.S. Securities and Exchange Commission (SEC) does not classify it as a security. This projection follows the SEC’s recent acknowledgment of 19b-4 forms for Litecoin ETFs.
XRP and Solana Prospects
The ongoing SEC lawsuit against Ripple creates uncertainty for an XRP-based ETF. A court ruled XRP is not a security on secondary markets, but the SEC has appealed. Similarly, Solana's status as a security remains unclear.
Regulatory Process and Expectations
The analysis focuses on 1933 Act filings, but alternative structures could emerge as well. Decisions were made under former SEC Chair Gary Gensler, and Commissioner Hester Peirce's task force may reassess the token classifications by the end of 2025.
Thus, Litecoin has the best odds of being approved as an ETF among altcoins. However, questions remain for XRP and Solana that could impact their approval.
