- 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 filings for XRP and Solana ETFs.
Litecoin and Hedera ETFs may hit the market before Solana and XRP funds, as predicted by Bloomberg analysts Eric Balchunas and James Seyffart. Sharing their views on the crypto ETF landscape, they suggest a phased rollout starting with Bitcoin-Ethereum combination ETFs, which have already shown significant success.
In line with Bloomberg Analyst Weighs In, as reported by CNF earlier, the timing of approval for SOL, XRP, LTC, and HBAR ETFs remains a key focus. Firms like Bitwise, Franklin Templeton, and Hashdex are leading these filings, 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
Once these dual ETFs gain traction, analysts believe Litecoin and Hedera will follow, citing 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, present major obstacles. Additionally, the SEC’s unclear stance on Solana and similar tokens compounds these challenges.
Bloomberg’s team notes that these challenges may delay approvals until a new SEC administration takes over. While crypto advocates remain optimistic about XRP’s ETF prospects, the analysts are less confident 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 the only asset manager currently filing for these ETFs, suggesting limited interest from issuers. In contrast, XRP and Solana ETFs have attracted multiple filings from major players like 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 spotlight.
As for Litecoin’s price specifically, according to CoinMarketCap data, Litecoin (LTC) is trading at $122.41, having surged by 4.95% in the past day and 10.69% in the past week.
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