Litecoin ETF Could Join Bitcoin and Ethereum ETFs Soon

Bloomberg experts James Seyffart and Eric Balchunas believe Litecoin has a better chance of getting approved.  Also, they assume the chances of approval for these three coins are XRP - 65%, Solana - 70%, Dogecoin - 75%

Experts say the SEC has already accepted the needed paperwork for a Litecoin ETF. They also believe the SEC will likely treat Litecoin as a commodity (like gold or oil) instead of a security (like stocks).

More investors are showing interest in crypto ETFs, as seen with Bitcoin and Ethereum ETFs, which have gained about $40.7 billion and $3.18 billion in investments.

Analyst James Seyffart doesn’t expect a Litecoin ETF to get that much money, but he says it could still work with at least $50 million.

The SEC is expected to decide on ETFs for Litecoin, Solana, XRP, and Dogecoin between October 2 and October 18. However, a Litecoin ETF might have been approved earlier.

Besides Litecoin, other crypto ETFs are being proposed. Canary Capital and 21Shares have applied for Hedera and Polkadot ETFs, but experts haven’t estimated their chances of approval yet.

James Seyffart thinks U.S. companies will take a “spaghetti cannon” approach—filing for many different crypto ETFs to see which ones get approved and attract investors. He expects a lot of new crypto ETFs, but some might shut down if there isn’t enough demand.

Even though people are hopeful about crypto ETFs, there are still uncertainties around XRP and Solana.

The SEC is still in a legal battle with Ripple. Even though Ripple won part of the case in August 2023, the issue isn’t fully settled yet.

The SEC’s leadership has changed, and it’s unclear how the new chair, Mark Uyeda, will handle enforcement.

The SEC needs to decide if Solana is a commodity or something else before approving an ETF.

Experts say these issues must be sorted out before the SEC can approve ETFs for these cryptocurrencies.