Bloomberg analysts foresee a staggered rollout of crypto ETFs, predicting Litecoin (LTC) and Hedera (HBAR) ETFs will likely launch ahead of Solana (SOL) and XRP ETFs. According to Bloomberg’s Senior ETF analyst Eric Balchunas, a wave of crypto-based ETFs is expected in 2025. However, approvals will not occur simultaneously. Balchunas noted that Bitcoin and Ethereum combination ETFs are likely to be the first out of the gate, followed by Litecoin and Hedera products.
Will Solana, XRP ETF Approvals Be Delayed?
“First out is likely the BTC + ETH combo ETFs, then prob Litecoin (bc its fork of BTC = commodity), then HBAR (bc not labeled security) and then XRP/Solana (which have been labeled securities in pending lawsuits),” Balchunas wrote on X. Bloomberg’s James Seyffart provided additional reasoning behind this outlook, explaining that complex legal hurdles surrounding XRP and Solana could delay their ETF approvals.
The Solana and XRP ETFs may have to wait for the upcoming SEC administration before the agency can consider approving the pending applications, Seyffart noted. He emphasized that unresolved regulatory questions, particularly related to their classification as securities, complicate their path to approval.
The U.S. Securities and Exchange Commission’s (SEC) ongoing lawsuit against Ripple remains a significant barrier for XRP ETFs. Ripple has been engaged in a protracted legal battle with the regulator, where the SEC argues that XRP constitutes an unregistered security. While the case is unresolved, analysts believe this legal uncertainty significantly lowers the odds of near-term ETF approval.
Solana faces similar hurdles. Bloomberg analysts highlight that the token’s regulatory status remains a point of contention, contributing to the likelihood of further delays in ETF launches. In contrast, Litecoin and Hedera benefit from their clearer regulatory standing, with neither being labeled as securities by the SEC.
However, while Litecoin and Hedera ETFs appear to have better odds of approval, Bloomberg analysts also questioned the market demand for these products. Seyffart pointed out that only Canary Capital has filed for Litecoin and Hedera ETFs, suggesting asset managers may not perceive strong investor interest in these offerings.
Whilst, Solana and XRP ETFs have garnered filings from multiple issuers, including Bitwise, Grayscale, and 21Shares. Despite this, analysts maintain that regulatory clarity will be critical for XRP and Solana products to advance.
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