Why LTC, HBAR crypto ETFs can debut before SOL, XRP – Analysts explain

• Bloomberg analysts predicted Litecoin and Hedera ETFs might launch earlier than Solana and XRP.
• Delays in Solana and XRP ETFs spotlight regulatory challenges and the affect of upcoming SEC management adjustments.

In a stunning improvement, Bloomberg’s ETF analysts, together with Eric Balchunas and James Seyffart, have predicted that Litecoin [LTC] and Hedera [HBAR] ETFs might launch earlier than Solana [SOL] and Ripple’s XRP ETFs.

Their insights are based mostly on the rising classification of Litecoin as a commodity and Hedera’s standing as a non-security. Each of those contribute to a extra favorable regulatory setting.

Bloomberg analysts spill the beans

Taking to X [formerly Twitter], Balchunas referred to Seyffart’s outlook, stating, 

“We count on a wave of cryptocurrency ETFs subsequent yr, albeit not suddenly.” 

He additional make clear the potential timeline for cryptocurrency ETF approvals.

The analyst emphasised that Bitcoin [BTC] and Ethereum [ETH] combo ETFs are prone to obtain approval first on account of their classification as commodities.

This aligns with the broader regulatory perspective that views these main cryptocurrencies as much less prone to face stringent safety considerations in comparison with newer or extra controversial belongings.

Balchunas added, 

“First out is probably going the btc + eth combo ETFs, then prob Litecoin (bc its fork of btc = commodity), then HBAR (bc not labeled safety) after which XRP/Solana (which have been labeled securities in pending lawsuits).”

What’s extra?

That being stated, in his outlook, Seyffart additionally drew consideration to the SEC’s rejection of a number of Solana ETFs on the seventh of December.

He highlighted that each ETFs would require additional consideration underneath the upcoming management of President-elect Donald Trump’s SEC chair choose earlier than they’re significantly evaluated.

This means a possible shift in how these belongings are handled in regulatory discussions as soon as a brand new chair takes the helm.

Commenting on the matter, Litecoin replied, 

“Eventually individuals will notice I’m THE digital silver for the world. Sufficient of this taking part in round already.”

For these unaware, XRP and SOL have been categorized as securities by the SEC. Moreover, Ripple has been engaged in a chronic authorized battle over XRP’s standing.

Whereas analysts level to larger approval odds for HBAR and LTC, uncertainty stays about investor demand.

Seeing this, many crypto consultants count on the SEC underneath Trump’s administration to undertake a extra supportive stance in direction of crypto belongings.

How will Trump’s rule change the crypto panorama?

Nevertheless, issues nonetheless appear constructive for SOL and XRP ETFs. Canary Capital’s latest submitting for a U.S. spot XRP ETF highlights the rising curiosity in cryptocurrency ETFs.

This follows Bitwise’s related utility and a rising wave of corporations, together with VanEck and Grayscale Investments, submitting for Solana ETFs.

Nevertheless, latest reviews counsel that SOL ETFs could face rejection on account of considerations over their asset classification as a safety.

Subsequently, ambiguity surrounding Solana’s standing, coupled with the SEC’s scrutiny, has created uncertainty for Solana ETF approvals this yr.