Indications Point to High Probability of XRP, DOGE, LTC ETF Approval
In a recent analysis by seasoned ETF analyst James Seyffart, the odds of a litecoin (LTC) exchange-traded fund (ETF) being approved in the near future are well over 90%, closely followed by a 75% likelihood for a dogecoin (DOGE) ETF. These predictions come amidst a shifting regulatory landscape that has sparked optimism for approval, with the U.S. Securities and Exchange Commission (SEC) already making positive strides in assessing certain tokens in recent weeks.
Seyffart, who previously accurately forecasted the approval of bitcoin (BTC) ETFs prior to their launch in 2024, has now set his sights on LTC and DOGE ETFs. With several ETF providers having submitted applications for various major tokens over the past year, particularly during the Biden administration, the response from the SEC has been lukewarm at best. However, the surge in the value of LTC by 15% in the last 24 hours, outpacing BTC’s 2% increase, and a 6% rise in DOGE, hint at a growing market interest in these assets.
According to Seyffart, the odds of approval for not only LTC and DOGE but also for XRP and Solana are relatively high, with expectations that filings for XRP and DOGE may be acknowledged as early as this week. The analyst emphasized the significant impact of these potential approvals, noting that under a different political landscape, the odds for these ETFs would have been significantly lower.
If the projected inflows for prospective litecoin ETFs materialize, investors could inject up to $580 million into these products, mirroring the adoption rates seen with bitcoin ETFs. This forecast aligns with CoinDesk’s earlier reporting on the potential market impact of these ETFs, underlining the growing significance of cryptocurrencies within the investment landscape.
As of Tuesday, Seyffart’s assessments place XRP and SOL products at under 70% likelihood of approval, with hurdles for XRP stemming from potential legal appeals related to the SEC’s case against Ripple Labs. These challenges highlight the complex regulatory environment in which these assets operate, underscoring the need for careful consideration and strategic planning in the realm of cryptocurrency investments.
Shaurya Malwa, Co-Leader of the CoinDesk tokens and data team in Asia, brings a wealth of experience and insight to the discussion of crypto derivatives, DeFi, market microstructure, and protocol analysis. With a diverse portfolio that includes numerous cryptocurrencies, Shaurya’s expertise provides a valuable perspective on the evolving landscape of digital assets and investment opportunities.
In conclusion, the growing likelihood of LTC and DOGE ETF approvals, as predicted by industry experts like James Seyffart, signals a maturing market for cryptocurrencies within the traditional financial sector. Despite regulatory challenges and legal uncertainties, the momentum behind these ETFs reflects a broader trend towards mainstream adoption of digital assets, reshaping the investment landscape for years to come.
