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- Litecoin and Hedera ETFs are expected to launch first due to fewer regulatory hurdles, while Solana and XRP face delays linked to legal challenges.
- Market demand for Litecoin and Hedera ETFs remains uncertain, with only limited issuer interest compared to multiple applications for XRP and Solana ETFs.
Litecoin and Hedera ETFs may enter the market before Solana and XRP funds, according to forecasts by Bloomberg analysts Eric Balchunas and James Seyffart. Sharing their views on the crypto ETF landscape, they suggest a gradual rollout starting with Bitcoin-Ethereum combination ETFs, which have already shown significant success.
In line with Bloomberg’s Weighs In analysis, as reported by CNF earlier, the timing of the approval of SOL, XRP, LTC and HBAR ETFs remains a key focus. Firms such as Bitwise, Franklin Templeton and Hashdex are leading these applications, with Bitcoin ETFs recently surpassing Satoshi Nakamoto’s BTC holdings in size. John Morgan confirmed this development in a tweet.
Bloomberg Analysts Predict Litecoin, Hedera ETFs To Come Before Solana, XRP ETFshttps://t.co/4jZbjI84zA
— John Morgan (@johnmorganFL) December 17, 2024
As these dual ETFs gain traction, analysts believe Litecoin and Hedera will follow suit, with fewer regulatory complications compared to Solana and XRP.
Regulatory Challenges for Solana and XRP
Unlike Litecoin and Hedera, Solana and XRP face significant regulatory hurdles. Analysts argue that unresolved legal issues, including the SEC’s classification of XRP as a security in the ongoing Ripple lawsuit, pose major obstacles. In addition, the SEC’s unclear position on Solana and similar tokens complicates these challenges.
Bloomberg’s team notes that these hurdles could delay the approvals until a new SEC administration takes over. Although crypto enthusiasts remain optimistic about XRP’s ETF prospects, analysts are less certain about its immediate chances given the complexities surrounding its legal status.
Uncertainty around Demand
Although Litecoin and Hedera ETFs face fewer obstacles, their market demand remains uncertain. Canary Capital is currently the only manager seeking authorization for these ETFs, thus suggesting limited interest from issuers. On the other hand, XRP and Solana ETFs have attracted several applications from major players such as Grayscale, Bitwise and 21Shares.
Despite the easier regulatory path for Litecoin and Hedera, their success will depend on investor appetite. The coming year will reveal whether the market is ready to embrace these funds or if other cryptocurrencies will take the limelight.
As for Litecoin’s price specifically, according to CoinMarketCap data, Litecoin (LTC) is trading for $122.41, having risen 4.95% in the last 24 hours and 10.69% in the last week.
