Experts Predict Litecoin ETF Approval Following SEC Feedback

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By Aaron Feuerstein January 17, 2025 In ETF, Litecoin, SEC, Solana, XRP

Trump’s incoming administration signals potential crypto-friendly changes at the SEC under proposed chair Paul Atkins, with multiple Spot crypto ETF applications awaiting review.
Bloomberg’s Eric Balchunas suggests Litecoin’s ETF application will receive first approval in 2025, citing completed SEC requirements and its commodity-like characteristics.
Despite Litecoin founder Charlie Lee’s concerns about institutional demand, supporters argue the ETF could attract crypto newcomers seeking alternatives to Bitcoin’s high entry point.
While XRP and Solana maintain stronger market presence and community support, Litecoin’s regulatory similarity to Bitcoin positions it favourably for ETF approval.

Donald Trump is going to take office soon and will bring with him (hopefully) a whole bunch of presents for the crypto community.

With a new chair at the US Securities and Exchange Commission (SEC) being one of the most anticipated changes, it’s hoped that the potential man on the job, Paul Atkins, will greenlight a stack of applications for Spot crypto exchange-traded funds (ETFs).

And while Solana and XRP are high on the list for most pundits, Bloomberg Senior ETF Analyst Eric Balchunas believes it’s Litecoin (LTC) that is set for an approval first.

He said that the “Litecoin ETF now has all the boxes checked”, following feedback from the SEC that, according to Balchunas, confirms it meets all the necessary requirements and conditions.

This is why the analyst believes the Spot Litecoin ETF will be the first approved in 2025.

The first alt coin ETF of 2025 is about to be on the clock. I don’t see any reason why this would be withdrawn either given SEC gave comments on the S-1, litecoin is seen as commodity and there’s new SEC sheriff in town.

Eric Balchunas

Will Anyone Buy a Litecoin ETF? Short Answer: Probably

And again, Solana and XRP would have been an obvious choice for an altcoin ETF, as both coins are enjoying great popularity, with XRP’s fan base withstanding a long legal battle with the SEC, which now finally seems to be coming to an end.

The price of XRP has outperformed Bitcoin and Ethereum recently – of course both are the only cryptocurrencies currently with a US Spot ETF – so naturally one could assume that investors are eager to get their hands on an ETF for these two popular coins.

Back in April 2024, Litecoin founder Charlie Lee voiced concerns over whether there would be enough demand for a LTC fund. He also pointed to less institutional interest in a Litecoin product compared to one for Ether or BTC.

Although he did say that approval would be straightforward due to Litecoin’s similarity to Bitcoin and “how it works and how decentralised it is, and how it is a commodity”.

Some users on platform X also questioned whether there will be enough demand.

Others pointed out that it most likely won’t be the BTC maxis moving to a Litecoin ETF, but rather no-coiners, so people who haven’t had much exposure to crypto or missed Bitcoin’s major gains and could be in it for the upside potential of LTC.

Author

Aaron Feuerstein

Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.