Bloomberg analysts Eric Balchunas and James Seyffart have stated that Litecoin has the best chance among altcoins for spot ETF approval in 2025. They rated its approval probability at 90%, far surpassing other cryptocurrencies like Dogecoin, Solana, and XRP.
Why Litecoin Leads
The key factor for Litecoin’s strong approval chances is its regulatory status. Since LTC is a Bitcoin fork operating on the same proof-of-work (PoW) mechanism, analysts believe it will be classified as a commodity rather than a security. Additionally, Litecoin has never conducted an initial coin offering (ICO), making it less likely to be targeted by the SEC. Firms like Grayscale and Canary Capital have filed spot LTC ETF applications that meet all regulatory criteria.
Regulatory Obstacles for Solana and XRP
Solana and XRP face uncertainties in regulatory matters. The SEC vs. Ripple case is ongoing, despite a 2023 ruling that XRP is not a security when sold on secondary markets. Solana was directly named a security in the SEC lawsuits against Coinbase and Binance, complicating the ETF approval process for these assets.
Political Changes and ETF Prospects
Political shifts following Donald Trump's election victory have boosted crypto ETF approval prospects. The new administration appears more open to cryptocurrency, potentially softening the SEC’s stance on digital assets. This has accelerated ETF filings. Nasdaq recently submitted 19b-4 forms for Litecoin and XRP on behalf of CoinShares, and the Cboe BZX Exchange has filed applications for XRP ETFs from Bitwise, 21Shares, and Canary Capital.
The prospects for crypto ETF approval have significantly increased in 2025 due to changes in regulatory and political environments. Litecoin, owing to its regulatory advantages, leads the way. However, other altcoins like Solana and XRP still face significant hurdles.
