Solana (SOL) and XRP ETFs Approvals Will Be Delayed, Predict Bloomberg Analysts

Bloomberg analysts foresee a staggered rollout of crypto ETFs, predicting Litecoin (LTC) and Hedera (HBAR) ETFs will likely launch ahead of Solana (SOL) and XRP ETFs.

Bloomberg analysts have predicted that Litecoin (LTC) and Hedera (HBAR) ETFs will launch before Solana (SOL) and XRP ETFs due to their clear regulatory standing.

According to Bloomberg Senior ETF Analyst Eric Balchunas, a wave of crypto-based ETFs is expected in 2025, but approvals will occur in stages. Balchunas noted that Bitcoin and Ethereum combination ETFs are likely to be approved first, followed by Litecoin and Hedera products.

“First out is likely the BTC + ETH combo ETFs, then prob Litecoin (bc its fork of BTC = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending lawsuits),” Balchunas wrote on Twitter.

However, Bloomberg’s James Seyffart provided additional context, explaining that the XRP and Solana ETF applications may have to wait for the upcoming SEC administration before the agency can consider approving them.

This is because the pending applications for XRP and Solana ETFs are facing complex legal hurdles due to the tokens being involved in lawsuits and regulatory actions.

According to Seyffart, the regulatory questions surrounding XRP and Solana ETF approval are particularly related to their classification as securities, which is complicating their path to approval.

The U.S. Securities and Exchange Commission (SEC) has been engaged in an ongoing lawsuit against Ripple, which is a major roadblock for XRP ETFs. The SEC argues that XRP is an unregistered security, while Ripple maintains that it is a decentralized digital asset.

This legal uncertainty is making it difficult for SEC to approve XRP ETFs, as it could expose the agency to legal challenges.

Solana also faces regulatory scrutiny, with Bloomberg analysts noting that the token’s status as a security is still being debated, which could lead to further delays in ETF launches.

In contrast, Litecoin and Hedera have benefited from their clear regulatory standing, with neither being labeled as securities by the SEC. This has given rise to better odds of approval for Litecoin and Hedera ETFs.

However, Bloomberg analysts also highlighted that only Canary Capital has filed for Litecoin and Hedera ETFs, which could indicate a lack of strong asset manager demand for these products.

On the other hand, multiple issuers, including Bitwise, Grayscale, and 21Shares, have filed for Solana and XRP ETFs, despite the regulatory hurdles. Analysts believe that clear regulatory status will be crucial for XRP and Solana products to advance.