SEC Greenlights LTC and SOL ETFs—Crypto’s Institutional Era Accelerates

The SEC just tipped its hand—Litecoin and Solana spot ETFs now have a 75%+ approval probability, per insider leaks. Institutional custody giants Coinbase and Fidelity are already drafting prospectuses.

Why it matters: After Bitcoin and Ethereum ETFs sucked in $30B this year, Wall Street wants the next liquidity firehose. Never mind that SOL’s DeFi ecosystem still collapses weekly.

The cynical take: Another ‘approved’ product for hedge funds to arbitrage against retail bagholders. The 19b-4 filings conveniently drop right before Q2 earnings season.

$147 (SOL)-based spot investment funds will be approved by 2025. While XRP emerges as a prominent option among the products being evaluated by the SEC, its approval likelihood remains slightly lower compared to LTC and SOL. The postponement of the XRP spot ETF decision has particularly created uncertainty in the market.

ContentsLTC and SOL ETFs Show Strong Approval PotentialXRP Decision Postponed, market Reacts

LTC and SOL ETFs Show Strong Approval Potential

The data reveals that the SEC is anticipated to announce its final decision on the LTC-based spot ETF application on October 2. For SOL, this date is set for October 10. Analyst Eric Balchunas estimates the approval probability for LTC and SOL spot investment products at approximately 90%. In contrast, the approval chance for XRP hovers around 85%.

Balchunas attributes this difference to Litecoin and Solana being considered relatively less controversial assets by regulatory bodies. Furthermore, their longstanding presence in the market and reliable technical infrastructures contribute to forming positive opinions. Balchunas also highlighted that direct statements by SEC Chairman Paul Atkins during this process could provide further clarity.

XRP Decision Postponed, Market Reacts

Initially, the SEC indicated May 3 for the eagerly awaited XRP ETF decision by investors. However, the commission later postponed this date to June 17. The news of the delay resonated instantly in the market, causing the XRP price to drop by 3%, settling at approximately $2.2.

Journalist Eleanor Terrett announced the SEC’s delay decision on social media with the words:NEW: The SEC has delayed making a decision on Franklin Templeton’s XRP spot ETF until June 17. This announcement notably increased short-term volatility in the XRP market.

With a market value of $130 billion, XRP ranks among the top assets in the crypto market that attract significant investor interest. However, decision delays can directly impact investor sentiment. Analysts suggest that if approved, the surge effect observed in Bitcoin$94,751 ETFs could also be replicated for XRP.

Experts note that the approval process involves both opportunities and risks for investors. The SEC’s varied approach to different asset types is a testament to the process being fraught with uncertainties. This leads investors to exercise greater caution and prudence.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.