Bloomberg Analysts Predict Litecoin, Hedera ETFs To Come Before Solana, XRP ETFs

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As a seasoned analyst with over two decades of experience in the financial industry, I find myself intrigued by the predictions made by Bloomberg analysts Eric Balchunas and James Seyffart. While I can’t predict the future, their insights into the crypto ETF landscape are certainly compelling.

According to Bloomberg’s analysts Eric Balchunas and James Seyffart, it is forecasted that the Litecoin and Hedera Exchange-Traded Funds (ETFs) may debut in the market prior to the Solana and Ripple (XRP) ETFs. These analysts have shared their perspectives on why they believe this sequence of events could occur within the crypto ETF sector.

Bloomberg Analysts Predict Litecoin, Hedera ETFs To Come First

In a recent post on X, Bloomberg analyst Eric Balchunas expressed his team’s belief that Litecoin and Hedera Exchange Traded Funds (ETFs) might launch first, ahead of those for Solana and Ripple (XRP). The analyst hinted at a potential influx of crypto ETFs in the coming year, but not all at once.

It is anticipated that the SEC will give its approval for combined Bitcoin and Ethereum ETFs first. Companies like Bitwise, Franklin Templeton, and Hashdex have submitted applications to launch these Dual ETFs. The Bitcoin and Ethereum ETFs have seen tremendous success in the market. Lately, these Bitcoin ETFs have even exceeded Satoshi Nakamoto’s Bitcoin holdings.

According to Bloomberg analysts’ projections, it seems likely that the Litecoin and Hedera Exchange-Traded Funds (ETFs) may appear first, followed by those based on Solana and XRP. James Seyffart outlined his reasons for this order of appearance.

Why The Solana And XRP ETFs Have Lower Approval Odds

According to Seyffart, it appears that the Securities and Exchange Commission (SEC) won’t be able to review the applications for Solana and Ripple ETFs until a new administration takes office. However, Bloomberg’s analyst cautions that these digital coins, along with others, face complicated legal matters regarding their classification as securities. Until those issues are resolved, it remains uncertain whether they can move forward.

For XRP, the ongoing Ripple vs. SEC lawsuit is one of the potential legal hurdles Seyffart might be alluding to in their statement. The SEC and Ripple have a protracted history marked by their continuous legal feud. Yet, despite these challenges, crypto influencers like Ben “Bitboy” Armstrong remain optimistic about the possibility of an XRP Exchange-Traded Fund (ETF) being introduced soon.

Currently, unlike Solana and XRP, Litecoin and Hedera haven’t been classified as securities by the US Securities and Exchange Commission (SEC). An analyst from Bloomberg pointed this out, further stating that although they anticipate a higher likelihood of approval for Litecoin and Hedera ETFs, there is some doubt about whether there exists a genuine demand for these investment funds.

It’s worth noting that only Canary Capital has submitted applications for a Litecoin and Hedera Exchange-Traded Fund (ETF), indicating that the issuers might not feel there’s enough market interest in these crypto products at this time. On the other hand, Bitwise, Canary Capital, 21Shares, and WisdomTree have all put forward proposals for XRP ETFs. Additionally, Grayscale, VanEck, Canary Capital, and Bitwise have each submitted applications for Solana ETFs.

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2024-12-17 21:44