Litecoin and Hedera ETFs May Launch Before Solana and XRP ETFs: Bloomberg Analysts

In a post on X, Bloomberg analysts Eric Balchunas and James Seyffart predicted that Litecoin (LTC) and Hedera (HBAR) exchange-traded funds (ETFs) might launch before those for Solana (SOL) and XRP. They believe the crypto ETF market will experience significant growth next year, though only some at a time.

We expect a wave of cryptocurrency ETFs next year, albeit not all at once. 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… pic.twitter.com/29vMdciZxE

— Eric Balchunas (@EricBalchunas) December 17, 2024

The analysts further predict that the U.S. Securities and Exchange Commission (SEC) will prioritize approving combined Bitcoin (BTC) and Ether (ETH) ETFs before considering LTC, HBAR, SOL, and XRP ETFs. Several firms, including Bitwise, Franklin Templeton, and Hashdex, have applied to offer these dual ETFs, which have gained significant traction, with BTC ETFs surpassing the holdings of Bitcoin’s creator, Satoshi Nakamoto.

LTC and HBAR ETFs to Launch Before SOL and XRP ETFs

Following the Bitcoin and Ether ETFs, Balchunas and Seyffart anticipate that the next wave of ETFs will likely involve LTC and HBAR, with Solana and XRP ETFs coming later. Seyffart explained that the SOL and XRP ETFs would probably have to wait until the next SEC administration, as there are unresolved legal questions regarding their classification as securities.

Seyffart also highlighted that the SEC has not classified Litecoin and Hedera as securities, unlike Solana and XRP. This distinction increases the likelihood of Litecoin and Hedera ETFs launching before those of Solana and XRP. However, he also noted uncertainty surrounding the demand for these ETFs. This uncertainty is reflected in Canary Capital being the only firm to have filed for Litecoin and Hedera ETFs, suggesting a lack of interest from other issuers.

In contrast, Solana ETFs have attracted filings from Grayscale, VanEck, Canary Capital, and Bitwise. Meanwhile, 21Shares, WisdomTree, Bitwise, and Canary Capital have submitted applications for XRP ETFs.

Is a DOGE ETF Coming?

In a related development, Balchunas also suggested that increasing regulatory clarity and institutional interest could lead to the creation of a Dogecoin (DOGE) ETF. 

Nate Geraci, president of the ETF Store, echoed the view, calling a “Spot DOGE ETF filing inevitable” with key developments expected in 2025. This potential ETF could further drive interest in DOGE, aligning with the growing demand for crypto-focused investment products.