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Key Takeaways:
- Litecoin could be the first altcoin to receive ETF approval due to its commodity status and market presence.
- Over 10 altcoins are in the running for ETF launches, with decisions expected before October 2025.
- Approval odds are data-driven, with Solana and Litecoin at 90%, based on liquidity, trading volume, and futures presence.
As the Crypto market braces for another potential breakout moment, ETF developments may take center stage—this time with altcoins leading the charge. According to Bloomberg ETF analyst James Seyffart, the SEC’s faster pace could usher in a new era of crypto-based exchange-traded funds by the end of summer 2025.
1. Litecoin May Lead the ETF Wave
During a recent episode of The New Era Finance Podcast, Seyffart identified Litecoin (LTC) as the most likely altcoin to receive ETF approval first. He called it “the easiest one” due to its classification as a commodity, its solid track record, and market presence. Seyffart suggested that under a different SEC regime, Litecoin’s ETF might have already been greenlit.
Although an ETF launch within 3–5 weeks is unlikely, it remains possible. The SEC is currently drafting a clearer framework for altcoin ETF qualification—something many see as a turning point for the broader market.
2. Which Altcoins Could Be Next?
ETF filings are already in motion for more than 10 major cryptocurrencies. Among the frontrunners are Solana (SOL), Cardano (ADA), XRP, Avalanche (AVAX), Polkadot (DOT), Tron (TRX), and Litecoin.
Seyffart and fellow analyst Eric Balchunas expect multiple approvals this year, with most decisions due by October. However, early approvals could arrive sooner, depending on how aggressively the SEC finalizes its guidance.
3. How ETF Odds Are Calculated
ETF approval isn’t random. Seyffart explained that they assign probabilities—like 90% for Litecoin and Solana—based on key metrics: market cap, liquidity, U.S. exchange listings, and futures market presence. These figures shape investor sentiment and institutional readiness.
Also Read: PayPal Unveils ‘Pay with Crypto,’ Cuts Cross-Border Fees 90%
A key question remains: will the SEC approve all qualified ETFs simultaneously, like Ethereum, or adopt a “first to file” model?
The clock is ticking on potential altcoin ETF approvals, and investors should stay ahead of the curve. With Litecoin and Solana showing strong odds, the second half of 2025 could mark a defining moment in crypto’s path to mainstream adoption.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
