Crypto
- Eric Balchunas believes that a Litecoin (LTC) ETF will be approved first next year.
- HBAR ETFs could also debut because the altcoin isn’t listed as a security.
- XRP and SOL are termed securities but could also see their ETFs approved in 2025.
The approval of altcoin exchange-traded funds (ETFs) in the U.S. could significantly impact cryptocurrency prices, increasing investor access to digital assets. Bloomberg ETF analyst Eric Balchunas predicts that altcoin ETFs for XRP, Litecoin (LTC), Hedera (HBAR), and Solana (SOL) are likely to secure approval soon.
In a post on X (formerly Twitter), Balchunas highlighted that the initial wave of altcoin ETFs may include Bitcoin (BTC) and Ether (ETH) combination ETFs, followed by Litecoin ETFs. As a Bitcoin fork, Litecoin qualifies as a commodity, similar to the leading cryptocurrency.
HBAR and Solana ETFs Could Follow Litecoin’s Lead
Balchunas also forecasts that HBAR ETFs may enter the market, as Hedera is not classified as a security. Additionally, altcoins such as XRP and SOL, despite being labeled as securities in ongoing lawsuits against major crypto firms, might still secure ETF approvals.
Read also: BlackRock’s Crypto ETF Strategy Highlights Bitcoin and Ethereum
As per SoSoValue data, the U.S. spot BTC ETFs have accumulated $36.73 billion in net assets, while spot ETH ETFs have attracted $2.46 billion since their introduction earlier this year. Similar inflows into altcoin ETFs could potentially drive up the prices of LTC, HBAR, XRP, and SOL as the market approaches the new year.
BlackRock Leads in Bitcoin ETF Market
BlackRock currently dominates the U.S. Bitcoin ETF sector, with its iShares Bitcoin Trust (IBIT) amassing $58.57 billion in net assets. Its spot ETH ETF (ETHA) holds $4.04 billion in net assets, second only to Grayscale. If BlackRock ventures into altcoin ETFs, it could lead this segment as well, owing to its competitive fees compared to Grayscale.
Earlier this year, BlackRock’s Head of Digital Assets, Robert Mitchnick, noted limited client demand for altcoins. He emphasized that interest remains primarily in Bitcoin and Ethereum, with minimal demand beyond these two cryptocurrencies.
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