Bloomberg analysts Eric Balchunas and James Seyffart have assigned Litecoin ($LTC) the highest probability of spot ETF approval in 2025, rating its chances at 90%.
Why Litecoin Has the Best Odds
The key reason for Litecoin’s strong approval chances is its regulatory status. As a Bitcoin fork operating on the PoW mechanism, it is seen as a commodity rather than a security. Litecoin's lack of an ICO further minimizes SEC interest, and spot LTC ETF applications from Grayscale and Canary Capital meet all regulatory criteria.
Regulatory Hurdles for Solana and XRP
While Solana and XRP have a fair chance of ETF approval, their regulatory status remains unclear. The SEC vs. Ripple case is unresolved. Solana has been classified as a security in SEC lawsuits against Coinbase and Binance, posing challenges for ETF approval.
Political Shift Boosts Crypto ETF Prospects
The regulatory environment shifted after Donald Trump's election victory. The new administration's openness to crypto suggests a potential easing of SEC’s stance on digital assets.
In 2025, the prospects for crypto ETFs appear promising, fueling market confidence in digital assets. Analysts predict more ETF launches, offering increased options.
