Bloomberg ETF analysts predict a 90% chance of SEC approval for a spot Litecoin ETF by the end of 2025, making it the most likely among proposed crypto ETFs.
Litecoin ETF Has the Best Odds for SEC Approval
Bloomberg ETF analysts James Seyffart and Eric Balchunas believe the SEC is likely to approve a spot Litecoin ETF before the end of 2025. They estimate a 90% approval chance, higher than other proposed ETFs like XRP (65%), Solana (70%), and Dogecoin (75%).
💡 Why is Litecoin more likely to get approval?
✅ The SEC has acknowledged Litecoin ETF filings.
✅ Litecoin operates on a proof-of-work (PoW) model, similar to Bitcoin.
✅ The SEC likely classifies Litecoin as a commodity, making approval smoother.
With ETF demand soaring—Bitcoin and Ethereum ETFs have seen $40.7B and $3.18B in net inflows—Litecoin’s entry could be another big step for crypto investments.
SEC Decision Expected by October 2025
According to Seyffart’s timeline, the SEC’s final deadline for Litecoin, Solana, XRP, and Dogecoin ETFs falls between October 2 and October 18, 2025.
📅 If all goes well, a Litecoin ETF could launch before then.
However, analysts believe Litecoin’s ETF won’t see massive demand like Bitcoin and Ethereum. Even with smaller inflows, it could still be profitable for fund issuers with just $50 million in assets.
More Crypto ETFs Could Be on the Way
🔎 Expect more crypto ETFs as fund issuers take a “spaghetti cannon” approach, throwing multiple proposals at regulators to see what sticks.
📝 Firms like Canary Capital and 21Shares have already filed for Hedera and Polkadot ETFs, though no approval odds have been assigned yet.
Challenges for XRP and Solana ETFs
❌ Regulatory concerns still loom over XRP and Solana ETFs.
📌 XRP faces an ongoing SEC lawsuit regarding its classification as a security. While Ripple won a partial court victory in 2023, the SEC has appealed, delaying ETF approval.
📌 Solana’s regulatory status is unclear, making it harder for the SEC to approve a commodity-backed ETF for it.
🔄 However, a change in SEC leadership could improve approval chances for both assets.
