Bloomberg Analyst Predicts Late 2025 Decisions for SOL, XRP, LTC, and HBAR ETFs Amid Regulatory Hurdles
Bloomberg’s James Seyffart has projected that decisions on exchange-traded funds (ETFs) for Solana (SOL), XRP, Litecoin (LTC), and Hedera (HBAR) may not come until late 2025, citing ongoing regulatory challenges and uncertainties within the U.S. Securities and Exchange Commission (SEC).
Key Highlights:
- Seyffart attributes delays to the lack of regulated futures markets for most altcoins, unlike Bitcoin and Ethereum, which have CME-backed futures.
- WisdomTree and 21Shares have filed applications for XRP ETFs, but current SEC rules pose barriers to approval.
- New SEC leadership in 2025 could introduce changes, potentially allowing staking within ETFs and expediting approval timelines.
Challenges for Altcoin ETF Approval
Seyffart explained that altcoin ETFs face significant hurdles under existing regulations, including concerns over market manipulation, custody, and compliance. Unlike Bitcoin and Ethereum, many altcoins lack established regulated futures markets, a key factor in prior ETF approvals.
“Without a regulated market of significant size, the SEC has historically denied altcoin ETF applications,” Seyffart stated. However, he noted that a potential shift in SEC leadership could bring about a more favorable regulatory environment for crypto products.
XRP ETF Filings and Staking Prospects
Recent XRP ETF filings, such as the “WisdomTree XRP Fund,” signal growing interest in altcoin ETFs. While these filings represent progress, they are still subject to stringent SEC review.
Seyffart also suggested that staking could become a pivotal feature of altcoin ETFs, particularly for assets like SOL and XRP. However, current regulations prohibit staking within ETF structures, leaving this development contingent on future regulatory changes.
Regulatory Timelines and Approval Processes
The analyst highlighted differences between ETF filing processes, such as the 19b-4 rule filings with set review deadlines and S-1 prospectuses, which lack fixed timelines. He noted that even if 19b-4 filings for altcoins were initiated now, decisions might still extend into late 2025.
Seyffart believes leadership changes at the SEC could influence the pace of ETF approvals. A pro-crypto administration could accelerate timelines, though the extent of potential changes remains uncertain.
Multi-Asset Index ETFs and Altcoin Challenges
Seyffart also discussed the potential for multi-asset index ETFs, which include a mix of Bitcoin, Ethereum, and altcoins like SOL and XRP. Products like Grayscale’s GDLC and Bitwise’s Crypto 10 Index, heavily weighted in Bitcoin and Ethereum, may face fewer regulatory hurdles.
He suggested that regulatory concerns over smaller altcoin allocations in these funds could be minimized, provided the majority of holdings remain in Bitcoin and Ethereum.
Outlook for 2025
Seyffart is cautiously optimistic about altcoin ETFs, noting that their fate largely depends on SEC leadership changes and shifts in regulatory priorities. He predicts that initial decisions on ETFs for XRP, SOL, LTC, and HBAR could arrive in late 2025, with subsequent approvals influenced by broader changes in the regulatory landscape.
