Bloomberg analysts Eric Balchunas and James Seyffart have rated Litecoin's spot ETF approval chances at 90%, positioning it as a leader among altcoins.
Why Litecoin Has the Best Odds
The key reason for Litecoin's high ETF approval chances is its regulatory status as a commodity rather than a security, owing to its Bitcoin fork nature and use of the same proof-of-work mechanism. Other factors include SEC and CFTC favorability, no ICO history, and Grayscale and Canary Capital's filings meeting all regulatory criteria.
Solana and XRP Face Regulatory Hurdles
Solana and XRP, despite their fair chances, face regulatory challenges. XRP's ongoing legal battles with the SEC create uncertainties about its status, and Solana has been named a security in lawsuits against Coinbase and Binance. These classification issues are significant hurdles for ETF approval.
Political Shift Boosts Crypto ETF Prospects
A regulatory shift occurred following Donald Trump's election, with the new administration appearing more open to crypto. This potential softening in the SEC's stance has accelerated ETF filings, including those for Litecoin and XRP. Market confidence in crypto ETFs has increased — Litecoin's approval odds surged from 42% in January to over 81% now.
Changes in the political and regulatory landscape are enhancing trust in cryptocurrency ETFs. Litecoin stands the best chance of approval due to favorable conditions and key regulatory support.
