Litecoin ETF Approval Likelihood May Increase as Regulatory Hurdles Ease
According to Bloomberg analysts, there is a 90% chance that the US Securities Commission will authorize a spot Litecoin ETF before the year ends. Compared to other proposed crypto ETFs, Bloomberg analysts James Seyffart and Eric Balchunas think this one has a better chance of being approved. According to their estimates, the chances of approval for spot XRP, Solana, and Dogecoin ETFs in 2025 are 65%, 70%, and 75%, respectively.
Among cryptocurrency ETFs, Litecoin may have the simplest route to SEC approval, according to Bloomberg experts. They pointed out that since S-1 and 19b-4 forms have already been filed and accepted, the SEC probably views Litecoin as a commodity.
Crypto ETF Race Heats Up as Fund Issuers Eye Potential in Litecoin
The competition for more ETFs comes after the existing Bitcoin and Ether ETFs garnered $40.7 billion and $3.18 billion in net inflows since their inception in January and July 2024, respectively, according to statistics from Farside Investors. A Litecoin ETF might be beneficial for fund companies with as little as $50 million in certain circumstances, according to Seyffart, even if he doesn’t believe it would draw that much demand.
They don’t have to hit it out of the park on a flows basis to be worthwhile from an issuer perspective,
Seyffart
According to Seyffart’s graphic, the SEC has until October 2–18 to make a decision about the Litecoin, Solana, XRP, and Dogecoin ETFs. According to Seyffart, a Litecoin ETF might debut before then.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment