Litecoin ETF approval odds at 90% amid crypto ETF race

Bloomberg ETF analysts James Seyffart and Eric Balchunas predict a 90% chance of the SEC approving a spot Litecoin (CRYPTO:LTC) ETF by the end of 2025.

This gives Litecoin higher odds than other proposed ETFs for XRP (CRYPTO:XRP), Solana (CRYPTO:SOL), and Dogecoin (CRYPTO:DOGE), which have approval chances of 65%, 70%, and 75%, respectively.

According to Seyffart and Balchunas, Litecoin's straightforward regulatory filings and commodity status are key factors in their prediction.

They noted that the SEC has acknowledged the 19b-4 forms for Litecoin ETFs.

Litecoin shares a similar proof-of-work consensus mechanism with Bitcoin (CRYPTO:BTC), potentially leading the SEC to view it as a commodity.

The final decision from the SEC on the Litecoin, Solana, XRP, and Dogecoin ETFs is expected between October 2 and 18.  

However, Seyffart suggested a Litecoin ETF could launch before then.

The race for more crypto ETFs comes amid strong demand for spot Bitcoin and Ether (CRYPTO:ETH) ETFs.

These ETFs have seen significant net inflows since launching.

The analysts noted the possibility of more crypto ETF filings.

Seyffart predicted US-based ETF issuers would follow a "spaghetti cannon approach," launching many different products to see what gains traction.

Balchunas noted that before Donald Trump won the U.S. election on Nov. 5, 2024, the odds for all these crypto ETFs — except Litecoin — were below 5%.

The security status of Solana and XRP needs to be resolved before the SEC can analyse them under a "commodities ETF wrapper," according to Seyffart.

At the time of reporting, the Litecoin (LTC) price was $128.93.