- Litecoin and Solana have a 90% chance of securing spot ETF approval in 2025, with decisions expected in October.
- XRP faces a delay, with its ETF decision pushed to June 17 and its approval chance lowered to 85%.
The race to secure approval for spot exchange-traded products (ETPs) in the U.S. has become more competitive, with Litecoin (LTC) and Solana (SOL) now positioned ahead of XRP in terms of ETF approval chances. While many expect XRP to eventually get its own ETF, recent data shows that Litecoin and Solana may see their products hit the market first, with a 90% likelihood of approval in 2025. Here’s a closer look at why these two cryptos are gaining the upper hand and what that means for the future of the market.
The Competitive Landscape for Crypto ETFs
The approval of spot ETFs has been a significant milestone for the crypto market, with Bitcoin setting a precedent. However, approval for other assets has been slower, and the U.S. Securities and Exchange Commission (SEC) has been particularly cautious with its stance on assets like XRP.
Eric Balchunas, a senior ETF analyst at Bloomberg, states that spot Litecoin and Solana ETFs have a strong 90% chance of receiving approval in 2025. The SEC plans to make its decision on Litecoin by October 2 and on Solana by October 10. Since the SEC already classifies both assets as commodities, they stand in a strong position for approval.
XRP Faces Slight Delay
While XRP remains a top contender for ETF approval, the situation isn’t as clear-cut. Franklin Templeton’s spot XRP ETF, for example, has been met with some delays. Originally scheduled for a decision in early May, the deadline has now been postponed until June 17. Despite this setback, XRP’s ETF still boasts an 85% chance of approval for 2025, which is notably lower than that of Litecoin and Solana.
This delay has had an impact on XRP’s market performance. On April 29, news of the postponement led to a slight price correction, with XRP dropping 3% and currently trading at $2.20. This dip is consistent with broader trends in the cryptocurrency market, which saw a minor decline in overall market capitalization.
RELATED:SEC Delays Franklin Templeton’s XRP ETF Decision Until June 2025
What This Means for Investors
The ongoing developments with Litecoin, Solana, and XRP ETFs suggest that the SEC is proceeding cautiously with its approval process. However, Litecoin and Solana are currently in a stronger position, with much higher odds of gaining approval this year.
For investors, this means that while the long-term prospects for XRP remain positive, they might need to wait a little longer for a potential ETF launch. On the other hand, those looking to invest in products tied to Litecoin or Solana may have more immediate opportunities.
In conclusion, the spotlight is on Litecoin and Solana for now, with their ETFs expected to pave the way for the next wave of crypto-based investment products.
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