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According to renowned Bloomberg analyst Eric Balchunas, the odds of a Litecoin (LTC) and Hedera (HBAR) ETF are enormous. Consider that issuers related to these coins have higher chances of approval compared to SOL or XRP. With this assertion, the expert cools the spirits of investors.
This vision from Balchunas cannot be received as surprising, considering SOL and XRP’s legal problems with regulators. The Securities and Exchange Commission (SEC) considers these two tokens to be unregistered securities. This means that these are assets that are being traded illegally and their companies deserve punishment rather than reward.
Meanwhile, the native currencies of Hedera and Litecoin are not given the same consideration by regulators. In that sense, there is a greater chance that the agency will approve exchange-traded funds for these currencies. Even a new administration should carry out a procedure to free Solana and Ripple from their current legal affairs.
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All this leads to the possibility of a Litecoin spot ETF being really likely in the short term, in Balchunas’ opinion. Despite this, the expert assures that they will all be approved next year 2025. “We expect a wave of ETFs next year,” he writes.
We expect a wave of Cryptocurrency ETFs next year, although 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
Litecoin could be reborn in 2025 with a spot ETF
The fact that an LTC spot ETF is next on the list is notably positive for this coin. Thanks to the influx of capital from Wall Street, the token could recover much of the ground lost in recent years.
It is important to remember that this currency is one of the oldest in the entire history of the crypto market. Furthermore, the token had its moment of glory during which it was considered digital silver (while Bitcoin was gold). However, the rise of native currencies on second-layer blockchains dethroned Litecoin from second place.
Over the years, LTC’s market capitalization lagged behind the rest of the crypto world’s top 10. Although the network has taken important steps in terms of developments, so far it has not found the formula to return to prominence. Probably, the arrival on the stock market could be that catalyst for the rebirth.
The possibility of LTC regaining its position as digital silver is there, at least in theory, with the issuance of an ETF. It is worth mentioning that one of the great qualities of this network is that, like Bitcoin, it is shielded in terms of security. In its entire history, almost 14 years, it has never suffered an incident related to the security or operation of its network. The latter could be highly valued by Wall Street.
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