Litecoin and Hedera ETFs Will Probably Be Approved Before XRP ETF, Market Analysts Say

Market analysts believe that certain assets have a better chance of being approved sooner than others as the cryptocurrency community prepares for the 2025 approval or rejection of altcoin exchange-traded funds (ETFs).

Several assets may have a higher chance of being approved sooner than others as the cryptocurrency community awaits the 2025 approval or rejection of altcoin exchange-traded funds (ETFs).

Before enabling issuers to introduce comparable products for Ripple (XRP) and Solana (SOL), US regulatory bodies could approve Litecoin (LTC) and Hedera (HBAR) ETFs, Bloomberg analyst Eric Balchunas recently tweeted.

According to Balchunas, combo ETFs for Bitcoin (BTC) and ether (ETH) will likely hit the market first. These cryptocurrencies’ spot ETF markets have seen cumulative inflows in the billions.

LTC is the second cryptocurrency with a higher chance of getting ETFs as it was created as a Bitcoin network fork. Over the years, the US Securities and Exchange Commission (SEC) has classified many altcoins as securities and decided that the relevant laws govern them. However, LTC is not included in this category.

In the multiple cases that the SEC has filed against cryptocurrency companies over the years, HBAR has managed to avoid being classified as a security. Since LTC and HBAR are not securities and the SEC is not engaged in any ongoing legal disputes with cryptocurrency companies over their status as a security, the SEC is likely to view them as commodities.

XRP ETFs seem unlikely because of a pending lawsuit between the SEC and the company that created the XRP Ledger, Ripple Labs. Since 2020, the status of XRP as a security has been at the heart of a legal battle between Ripple and the SEC.

Once the complex legal issues surrounding the coin are resolved, XRP ETFs will be up for grabs, another Bloomberg analyst, James Seyffart, noted, even though a judge decided last year that XRP can only be classified as a security when sold to institutional investors.

This is slated to happen in 2025 when the new SEC administration takes over. The recent rejection of a few Solana ETF applications was linked to the coin’s designation as a security.