When Will SOL, XRP, LTC, HBAR ETFs Be Approved? Bloomberg Analyst Weighs In
The Securities and Exchange Commission (SEC) has been hesitant to approve altcoin ETFs because of the lack of regulated futures markets, which may delay approval until late 2025. This means that ETFs for altcoins like Solana (SOL), XRP, Litecoin (LTC), and Hedera (HBAR) might not be approved for a few more years due to current regulatory challenges.
Bloomberg analyst James Seyffart recently shared insights on this issue, explaining that the SEC’s reluctance to approve altcoin ETFs is primarily because there are no regulated futures markets for these cryptocurrencies. Seyffart mentioned that historically, the SEC has denied altcoin ETF applications because of this reason. Unlike Bitcoin and Ethereum ETFs, which have advanced due to being associated with CME-regulated markets, altcoin ETFs face more scrutiny. However, with potential changes in SEC leadership, there is hope for faster approvals.
Although there have been recent XRP ETF filings, like WisdomTree’s “XRP Fund,” progress is slow due to regulatory challenges related to custody, market manipulation, and compliance. Seyffart suggests that staking for altcoins like XRP and SOL could play a key role in ETF products if a pro-crypto administration takes charge of the SEC in 2025. This change could increase demand for altcoin ETFs, although the current structures do not allow for staking within ETFs.
Looking ahead, the approval of altcoin ETFs will depend on leadership changes and SEC reforms. Seyffart is cautiously optimistic, predicting potential decisions in 2025 as regulations evolve. He also mentioned index ETFs like Grayscale’s GDLC, which invest primarily in Bitcoin and Ethereum. These products might face fewer regulatory challenges if they have minimal allocations to altcoins.
In previous reports, it was mentioned that Solana (SOL) and Ripple (XRP) are looking for ETF approvals to potentially boost their value significantly. Currently, Solana (SOL) is trading at $238.81, with a slight decrease in the past day and week. As we wait for regulatory changes and leadership shifts, the future of altcoin ETFs remains uncertain, but there is hope for progress in the coming years.
