Ripple ETFs (XRP) may lag behind Litecoin and Hedera, Bloomberg analyst predicts

As the crypto community prepares to anticipate approvals or rejections of altcoin exchange-traded funds (ETFs) in 2025, market analysts believe some assets have a better chance of getting the green light sooner than later. others

Bloomberg analyst Eric Balchunas tweeted that U.S. regulatory authorities could approve ETFs for Litecoin (LTC) and Hedera (HBAR) before allowing issuers to launch similar products for Ripple (XRP) and Solana (SOL).

The LTC and HBAR ETFs were probably launched first

Balchunas explained that the market will likely witness the launch of combined bitcoin (BTC) and ether (ETH) ETFs. These cryptocurrencies have spot ETF markets that have seen billions of cumulative inflows. Therefore, Balchunas believes they have a better chance of getting to the listing platforms first because of their pre-existing markets.

The second most likely cryptocurrency to get an ETF is LTC because it was created as a fork of the Bitcoin network. The United States Securities and Exchange Commission (SEC) has labeled many altcoins as securities and deemed them subject to appropriate laws over the years. However, LTC has been exempted from this classification.

The same concept applies to HBAR, which has escaped being labeled a security in numerous lawsuits the SEC has brought against crypto companies over the years. LTC and HBAR are not considered securities, so they are not part of any pending lawsuits between the SEC and crypto companies. therefore, they would likely be viewed as commodities by the SEC.

Why not XRP ETFs?

Conversely, XRP ETFs seem far-fetched due to an ongoing lawsuit between the SEC and Ripple Labs, the developer behind the XRP Ledger.

Ripple and the SEC have been embroiled in a lawsuit since 2020 over XRP’s status as a security. In addition to this, the cryptocurrency has also been mentioned in other pending lawsuits as security.

Although a judge ruled last year that XRP can only be classified as a security when sold to institutional investors, another Bloomberg analyst, James Seyffart, mentioned that XRP ETFs would be seriously considered when it is resolved the complex legal issues surrounding the currency. According to its ETF Outlook report, that will likely happen when the new SEC administration takes over in 2025.

Meanwhile, some requests for the Solana ETF were recently rejected, and analysts linked the development to the coin’s classification as a value.

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