Analysts Predict 95% Chance of Approval for Crypto ETFs

Analysts foresee a promising outlook for cryptocurrency ETFs, with a 95% chance of approval for Solana, XRP, and Litecoin by the SEC. This could be a game-changer for investors this year.

Analysts Boost ETF Approval Chances to 95 Percent

Analysts say there’s a strong chance for three high-profile crypto exchange-traded funds (ETFs) – Solana, Litecoin, and XRP – to receive a green light from the US Securities and Exchange Commission (SEC) this year. The team of Bloomberg’s experts, Eric Balchunas and James Seyffart, announced the exciting news, predicting a 95% likelihood of approval in a post shared on X earlier this week. This figure is an increase from their previous estimation of 90%, which is quite noteworthy in the dynamic world of cryptocurrency ETFs.

Potential Approval Timelines for ETFs

In addition, Balchunas and Seyffart aren’t just optimistic about these three individual assets. The analysts extended the same 95% odds to ETFs that would track an entire index or basket of cryptocurrencies. They noted that the SEC’s final decision on the Solana, Litecoin, and XRP ETFs is scheduled for October, while a crypto basket ETF could see approval as soon as this week. The potential for multiple ETF approvals could reshape how investors access these cryptocurrencies in the market.

Additional Altcoin ETFs Awaiting Approval

The analysts also weighed in on other altcoin ETFs, assigning a 90% probability for the approval of assets like Dogecoin, Cardano, Polkadot, Hedera, and Avalanche, stating that final decisions are expected in the fourth quarter of the year. Reflecting on the current climate of crypto ETFs, Balchunas indicated in June that we should gear up for a potential “altcoin ETF summer.” Seyffart added that broad-index tracking ETFs could be on the SEC’s agenda very soon, possibly within next month.

Launch of the First Solana Staking ETF

In related news, a novel product making headlines is the REX Osprey Solana Staking ETF, which is set to officially launch this Wednesday. This will mark the first ETF in the US that permits crypto staking. However, it wasn’t all smooth sailing for this new product, as it faced initial regulatory scrutiny. The SEC raised concerns, particularly over whether the ETF could be classified as an investment company per securities laws. After some back and forth, the issuers agreed to invest a significant percentage of assets outside the US to secure the necessary approvals.

SEC Delays Decisions on Ethereum and Bitcoin Trusts

On the flip side, the SEC seems to be dragging its feet regarding Ethereum staking. Just on Monday, it postponed its decision about whether Bitwise’s spot Ether ETF could include staking provisions. The regulatory body also delayed its assessment of the listing and trading of Osprey Bitcoin Trust shares. This continued procrastination raises questions about the SEC’s approach to regulating the rapidly evolving landscape of cryptocurrency investment options, creating some uncertainty for investors and issuers alike.

In sum, there’s a significant buzz around the potential approval of multiple altcoin ETFs, with analysts giving strong odds to Solana, Litecoin, and XRP, among others. The anticipated approvals could usher in a new era of accessibility for investors. However, ongoing delays from the SEC in other areas indicate that the path to full regulatory clarity is still quite complex and fraught with challenges.