When Will SOL, XRP, LTC, HBAR ETFs Be Approved? Bloomberg Analyst Weighs In

The SEC’s delay in approving altcoin ETFs is mainly due to the lack of regulated futures markets. This delay could push approval back until late 2025. The situation hinges on potential changes in SEC leadership, but there is some hope that staking and pro-crypto policies could help move things along.

Bloomberg analyst James Seyffart recently shared insights suggesting that approval for Solana (SOL), XRP, Litecoin (LTC), and Hedera (HBAR) ETFs might not happen until late 2025 due to existing regulatory obstacles. Historically, the SEC has rejected altcoin ETF applications due to the absence of substantial regulated markets for these cryptocurrencies.

The approval process for altcoin ETFs faces tougher scrutiny compared to Bitcoin and Ethereum ETFs, given the link between the latter and CME-regulated markets. Seyffart believes that upcoming shifts in SEC leadership could potentially speed up the approval process. Recent XRP ETF filings, like WisdomTree’s “XRP Fund,” are steps in the right direction, although issues related to custody, market manipulation, and compliance still pose barriers.

There’s hope that staking for altcoins like XRP and SOL could be crucial for ETF products if a pro-crypto administration leads the SEC in 2025. This change could drive demand for altcoin ETFs, even though the current structures do not allow staking within ETFs.

Looking ahead to multi-asset ETFs, Seyffart remains cautiously optimistic, anticipating potential decisions in 2025 based on regulatory changes. He also discussed index ETFs that hold multiple cryptocurrencies, like Grayscale’s GDLC, which focuses primarily on Bitcoin and Ethereum. These products may face fewer regulatory challenges if they have minimal altcoin allocations.

Previous reports indicated that Solana (SOL) and Ripple (XRP) are banking on the approval of their ETFs to drive significant surges in value. For instance, ETFSwap (ETFS) tokens are starting to rally, with a potential 1,000% increase for SOL. As of the time of writing, Solana (SOL) is trading at $238.81, with a slight decrease in the past day and week.

Please remember that this article is for informational purposes and not investment advice. It’s essential to do your own research and consult with financial advisors before making any investment decisions. The information presented here may not always be current or up to date.