December 18, 2024
According to an analysis by ETF analysts Eric Balkunas and James Seyvart, a Litecoin or Hedera ETF is likely to receive SEC approval before Solana or XRP.
The duo also claimed that a Bitcoin/Ethereum ETF is closer to approval.
Litecoin ETF Prospects
Balkunas made the bold prediction in a social media post, referencing an exclusive article from fellow ETF analyst James Seyfart. The duo recently predicted that MicroStrategy would enter the Nasdaq 100, which quickly came true. Industry analysts typically expect Solana ETFs to be approved soon, but Balkunas bucked the trend:
“We expect a wave of crypto ETFs next year, though not all at once,” he said. “The first ones will likely be a Bitcoin + Ethereum mutual fund, then maybe Litecoin (because it’s a fork of Bitcoin, [so it’s] a commodity), then HBAR (because it’s not classified as a security) and then XRP/Solana (which has been classified as a security in pending litigation).”
Seyfart noted in his own writings that Solana’s ETFs received a direct rejection from the SEC in December. As a result, the SEC will not consider new applicants until the next administration. The SEC is likely to be more friendly after President-elect Trump is inaugurated, but there is no guarantee that it will reconsider these applications.
Instead, analysts point to the joint Bitcoin/Ethereum HashDex ETF, which has suffered delays without outright rejection. Both constituent assets already have their own ETFs, so a joint product is certainly possible.
However, they claim that the next most likely ETF is Litecoin, which has been performing fairly well throughout the bull market.
