Markets Bet Litecoin and Hedera ETF Before XRP ETF
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).
The Bloomberg analyst Eric Balchunas tweeted that before enabling issuers to introduce comparable products for Ripple (XRP) and Solana (SOL), US regulatory bodies might authorize Litecoin (LTC) and Hedera (HBAR) ETFs.
According to Balchunas, Bitcoin (BTC) and ether (ETH) combo ETFs will probably be introduced to the market first. The spot ETF markets for these cryptocurrencies have seen cumulative inflows in billions.
Balchunas thinks they have a better chance of reaching listing platforms first because of their existing markets, Since LTC was developed as a Bitcoin network fork, it is the second cryptocurrency with a greater likelihood of receiving ETFs. Over the years, the US Securities and Exchange Commission (SEC) has classified many altcoins as securities and determined that the relevant laws govern them. LTC, however, is not included in this category.
HBAR has avoided being classified as a security in the many cases the SEC has filed against cryptocurrency companies over the years. Since LTC and HBAR are not securities, they are not involved in any ongoing legal disputes between the SEC and cryptocurrency companies; as a result, the SEC is likely to view them as commodities.
Why Not XRP ETFs?
XRP ETFs seem unrealistic due to a pending lawsuit between the SEC and the company that created the XRP Ledger, Ripple Labs. Since 2020, XRP’s status as a security has been at the center of a legal battle between Ripple and the SEC.
XRP ETFs will be considered once the intricate legal issues surrounding the coin are settled, according to James Seyffart, another Bloomberg analyst, despite a judge’s decision last year that XRP can only be categorized as a security when sold to institutional investors.
This is expected to occur in 2025 when the new SEC administration assumes power. The recent rejection of a few Solana ETF applications was related to the coin’s designation as a security.
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