Bloomberg analysts assign Litecoin a 90% probability of ETF approval in 2025, positioning it ahead of other altcoins.
Why Litecoin Has the Best Odds
The primary reason for Litecoin's strong approval chances is its regulatory status. Litecoin is classified as a commodity rather than a security because it operates under the same proof-of-work mechanism as Bitcoin. Additionally, Litecoin has never conducted an ICO, reducing its exposure to regulatory risks. Grayscale and Canary Capital's applications for a spot LTC ETF meet all regulatory criteria.
Regulatory Hurdles for Solana and XRP
Solana and XRP face regulatory uncertainties. The SEC's ongoing legal battle with Ripple over XRP leaves its status unresolved. Solana, named as a security in SEC lawsuits against Coinbase and Binance, presents another obstacle for ETF approval.
Political Climate and Market Developments
The regulatory environment shifted after Donald Trump's election victory, with the new administration's stance on crypto proving more favorable. This has accelerated ETF filings and increased market confidence in the potential for altcoin ETF approvals.
The growing confidence in crypto ETFs highlights a shift in institutional sentiment towards digital assets, making Litecoin ETF approval in 2025 more likely.
