Bloomberg analysts predict high approval odds for Litecoin's spot ETF amid shifting political and regulatory landscapes, marking it as a frontrunner among altcoins.
Reasons for Litecoin's Success
The primary reason for Litecoin's strong approval odds lies in its regulatory status. Being a Bitcoin fork that operates on the Proof-of-Work mechanism, analysts believe it will be classified as a commodity rather than a security. The absence of an ICO makes it less likely to be targeted by the SEC. Grayscale and Canary Capital have filed spot LTC ETF applications, meeting all regulatory criteria.
Regulatory Hurdles for Solana and XRP
Solana and XRP also have fair chances for approval, but their regulatory status remains unclear. The SEC vs. Ripple case is still unresolved, despite a 2023 ruling stating that XRP is not a security when sold on secondary markets. However, the SEC continues to challenge this decision. Solana was directly named as a security in SEC lawsuits against Coinbase and Binance, posing a larger hurdle for ETF approval.
Political Support Boosts Crypto ETFs
Analysts highlight the change in the regulatory environment following Donald Trump’s election victory. The new administration appears more open to crypto, potentially softening the SEC's stance on digital assets. This shift has accelerated ETF filings, including recent submissions by Nasdaq and Cboe BZX.
The odds for altcoin-based ETFs like Litecoin continue to increase. As regulatory landscapes and political support clarify, more crypto ETFs are expected to emerge, offering new opportunities for investors.
