- Bloomberg analysts predicted Litecoin and Hedera ETFs could launch before Solana and XRP.
- Delays in Solana and XRP ETFs highlight regulatory challenges and the impact of upcoming SEC leadership changes.
As a seasoned analyst with years of experience navigating the complex world of financial regulations and cryptocurrencies, I find this prediction by Bloomberg’s Balchunas and Seyffart intriguing. It seems the regulatory landscape for digital assets is shaping up to be quite interesting in the coming year.
It’s unexpected news: Bloomberg’s team of ETF analysts, including Eric Balchunas and James Seyffart, have suggested that Exchange-Traded Funds (ETFs) based on Litecoin [LTC] and Hedera [HBAR] might debut earlier than those for Solana [SOL] and Ripple‘s XRP.
Their insights are based on the growing classification of Litecoin as a commodity and Hedera’s status as a non-security. Both of these contribute to a more favorable regulatory environment.
Bloomberg analysts spill the beans
Taking to X [formerly Twitter], Balchunas referred to Seyffart’s outlook, stating,
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once.”
He further shed light on the potential timeline for cryptocurrency ETF approvals.
As a crypto enthusiast, I’ve been closely following the news, and it seems that the analysts are suggesting that the combination ETFs for Bitcoin (BTC) and Ethereum (ETH) might be approved sooner rather than later. This is because these ETFs are categorized as commodities, which may expedite their approval process.
From a broader regulatory viewpoint, these well-known cryptocurrencies are considered to have fewer stringent security issues compared to less established or more contentious digital assets.
Balchunas added,
“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).”
What’s more?
Speaking of which, Seyffart additionally highlighted that the SEC declined several Solana ETFs on the 7th of December in his perspective.
It was emphasized that both ETFs need careful examination under the future guidance of President-elect Donald Trump’s choice for the SEC chair, as only then can they be thoroughly assessed.
This suggests a possible change in the approach towards handling these assets during regulatory deliberations, once a new leader assumes their position.
Commenting on the matter, Litecoin replied,
“Sooner or later people will realize I’m THE digital silver for the world. Enough of this playing around already.”
For people who might not know, the Securities and Exchange Commission (SEC) considers XRP and SOL to be securities. Additionally, Ripple is embroiled in a lengthy legal dispute about the classification of XRP.
Although analysts suggest a likely increase in approval for HBAR and LTC, it’s still unclear how much interest there will be from investors.
Given these circumstances, numerous cryptocurrency specialists anticipate that the Securities and Exchange Commission (SEC) under President Trump’s administration will take a more favorable approach towards digital assets.
How will Trump’s rule change the crypto landscape?
Nevertheless, it appears that the outlook remains optimistic for SOL and XRP ETFs. Canary Capital’s latest application for a U.S. XRP ETF underscores the increasing enthusiasm towards crypto ETFs.
As an analyst, I find myself observing a trend that mirrors Bitwise’s move and the increasing number of companies such as VanEck and Grayscale Investments, who are submitting proposals for Solana Exchange-Traded Funds (ETFs). This suggests a growing interest in Solana within the investment community.
Yet, it appears that the latest findings indicate potential rejections for SOL ETFs, stemming from doubts about their categorization as securities.
Consequently, the unclear standing of Solana, along with the Securities and Exchange Commission’s examination, has led to a sense of doubt regarding the approval of Solana ETFs in the current year.
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2024-12-18 19:04