Litecoin and Hedera ETFs Could Be Approved Sooner Than Solana and XRP

According to Bloomberg’s Eric Balchunas and James Seyffart, Litecoin and Hedera ETFs may receive approval before those for Solana and XRP. Their analysis suggests a potential surge in cryptocurrency ETF approvals over the next year, though these might not all be approved simultaneously.

What’s Driving the Predictions for Litecoin and Hedera?

Balchunas believes that Litecoin and Hedera ETFs have a stronger chance of approval due to fewer legal obstacles compared to Solana and XRP. This could lead to a faster rollout of these ETFs in the coming months.

Legal Hurdles for Solana and XRP

The approval process for Solana and XRP ETFs faces complications due to legal issues around their classification as securities. Ongoing legal battles, such as the one between Ripple and the SEC over XRP, are further delaying the process.

Market Demand and the ETF Landscape

Canary Capital is the only firm currently pursuing ETFs for Litecoin and Hedera, raising questions about the market demand for these tokens. Meanwhile, firms like Bitwise, 21Shares, and WisdomTree are focused on filing for XRP ETFs, and Grayscale, VanEck, and Bitwise are working on Solana ETF applications.

What’s Next?

While the regulatory landscape continues to shift, approval for Litecoin and Hedera ETFs appears more likely due to their relatively straightforward legal standing. However, legal challenges remain a significant hurdle for Solana and XRP. Keep an eye on the evolving regulatory environment as it shapes the future of crypto ETFs.

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