- Litecoin and Hedera ETFs are likely to arrive before Solana and XRP ETFs due to fewer regulatory hurdles, according to Bloomberg analysts.
- Solana and XRP face regulatory challenges, including the SEC’s classification of XRP as a security and unclear stance on Solana, which may delay their ETF approvals.
- Market demand for Litecoin and Hedera ETFs remains uncertain, with only limited issuer interest compared to multiple filings for XRP and Solana ETFs.
Cryptocurrency enthusiasts are eagerly anticipating the arrival of Litecoin and Hedera ETFs, which are predicted by Bloomberg analysts to launch before Solana and XRP. This is due to fewer regulatory challenges faced by Litecoin and Hedera. However, the market demand for these ETFs remains uncertain with limited issuer interest, unlike the multiple filings for XRP and Solana ETFs.
The Predicted ETF Rollout Order
Analysts Eric Balchunas and James Seyffart from Bloomberg have shared their views on the crypto ETF landscape, predicting that Litecoin and Hedera ETFs may hit the market before Solana and XRP funds. They proposed a phased rollout, beginning with Bitcoin-Ethereum combination ETFs that have already proved successful. Firms such as Bitwise, Franklin Templeton, and Hashdex are spearheading these filings, with Bitcoin ETFs recently surpassing Satoshi Nakamoto’s BTC holdings in size.
Regulatory Hurdles for Solana and XRP
Solana and XRP, unlike Litecoin and Hedera, are facing significant regulatory challenges. These challenges include unresolved legal issues such as the SEC’s classification of XRP as a security in the ongoing Ripple lawsuit. The SEC’s unclear position on Solana and similar tokens further complicates these challenges. Bloomberg’s team suggests that these obstacles may postpone approvals until a new SEC administration takes over.
Market Demand Uncertainty for Litecoin and Hedera ETFs
Despite facing fewer obstacles, the market demand for Litecoin and Hedera ETFs remains uncertain. Canary Capital is currently the only asset manager filing for these ETFs, indicating a lack of interest from issuers. In contrast, XRP and Solana ETFs have attracted multiple filings from prominent players like Grayscale, Bitwise, and 21Shares. Hence, the success of Litecoin and Hedera ETFs is largely dependent on investor appetite, which will be revealed in the coming year.
Conclusion
As the crypto world awaits the arrival of these ETFs, Litecoin’s price has surged by 4.95% in the past day and 10.69% in the past week, according to CoinMarketCap data. The future of these funds will undoubtedly shape the crypto market landscape, revealing whether the market is ready to embrace these funds or if other cryptocurrencies will steal the spotlight.
