Litecoin and solana ETFs have the best chance of approval, Bloomberg says

The race to launch altcoin and meme coin spot ETFs is heating up, with a mind-blowing 72 filings so far, including ones for dogecoin, XRP, and trump. However, not all of these have an equal chance of approval.

Bloomberg Intelligence’s James Seyffart estimates the likelihood of a litecoin ETF or Solana ETF approval at 90%. Grayscale, Bitwise, and Franklin Templeton are among the firms awaiting decisions on funds tied to these assets. Interestingly, solana is the sixth-largest crypto by market cap, at $75.6 billion, while litecoin is a distant 24th with a $6.36 billion market cap. 

Seyffart puts the odds for an XRP ETF at 85%, though a report from Kaiko Research put it at the front of the crypto ETF race.

Finally, both dogecoin and hedera ETFs have an 80% chance of being approved, while the odds for avalanche, cardano, and polkadot ETFs are all at 75%.  

Earlier this month, Canada approved a solana spot ETF, making it the first country to do so. Canada was also the first to approve spot bitcoin ETFs.

Alexander Blume, CEO of Two Prime, said that while most applications, from XRP to dogecoin, will find their way to approval thanks to the crypto-friendly new administration, he strongly doubts their influence will be anything near that of bitcoin.

“These assets are highly speculative and have no real value. Institutional investors won’t be easily fooled by the ETF wrapper,” he said.

To put these new filings into perspective, the SEC approved bitcoin ETFs just over a year ago, in January 2024. Bitcoin spot ETFs have experienced significant success and just had their best week since December, with inflows totaling a whopping $3.2 billion.

Earlier this week, the Nasdaq exchange filed form 19b-4 with the SEC to list and trade the 21Shares dogecoin ETF. House of Doge, the corporate arm of the Dogecoin Foundation, filed for a dogecoin ETF with the SEC in tandem with 21Shares earlier this month.

Meanwhile, the SEC delayed several ETF decisions this week, including those for XRP, dogecoin, polkadot, and solana ETFs. The commission also delayed its decision on whether it would permit staking (locking up coins and earning rewards in return for helping to secure the blockchain) for the Franklin Templeton ethereum ETF.

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” it said in the filing. The new date for next steps is June 15, while most final deadlines for approvals will be due in October.