Bloomberg Analyst James Seyffart has outlined potential timelines for the approval of Solana (SOL), XRP coin, Litecoin (LTC), and Hedera (HBAR) exchange-traded funds (ETFs). Seyffart predicts that decisions on these altcoin ETFs could be delayed until late 2025, depending on a variety of factors, as regulatory discussions in the United States gather pace.
Bloomberg Analyst Shares Timeline for Approval of Altcoin ETFs
According to Bloomberg Analyst James Seyffart, the current landscape for altcoin ETFs is still somewhat murky due to previous decisions made by the SEC. The approval of Bitcoin and Ethereum ETFs was primarily due to their affiliation with CME-regulated futures markets. However, many altcoins, including SOL and XRP, do not have regulated futures markets, which could slow down the ETF evaluation process.
“Without a significant regulated market, the SEC has historically rejected altcoin ETF applications,” Seyffart said. Seyffart noted that new SEC leadership in 2025 could change these guidelines, but the timeframes for gaining approval are still unclear. Seyffart also noted that while firms like WisdomTree and 21Shares have recently filed for XRP ETFs, current regulations do not allow them to be launched. Some of the issues that need to be resolved include market manipulation, custody, and compliance issues before such products are allowed to go through.
ETF applications for XRP coin and staking in ETFs
Recent XRP ETF applications, including one filed by WisdomTree under the name “WisdomTree XRP Fund,” are seen as a stepping stone for altcoin ETFs. The fund was registered in Delaware and the company is expected to file its official S-1 with the US SEC soon. Bloomberg Analyst James Seyffart highlighted that staking could become a key component of future ETFs for altcoins like Ethereum and potentially others like SOL and XRP. However, he noted that current regulations do not allow staking within ETF structures. Seyffart said:
If a more crypto-friendly US SEC administration comes to power, we could see staking allowed as early as 2025. Allowing staking could increase demand for such products.
Difference Between XRP Coin, ETH, and Bitcoin Approvals
Bloomberg Analyst James Seyffart outlined the difference between two primary filing processes for ETFs… The first is Rule 19b-4 filings with the SEC’s Division of Commercial Markets, which initiate a formal review period with specific deadlines. The other is S-1 prospectus filings, which do not have fixed timelines. While Bitcoin and Ethereum ETFs are moving through the 19b-4 process, he noted that most altcoin ETFs have yet to do so. This means their approvals are not yet tied to a regulatory clock, Seyffart said:
Even if altcoin ETF applications begin the 19b-4 process today, decisions could take until late 2025
The analyst added that impending leadership changes at the SEC could also impact the pace of approvals. A new US SEC chair under a pro-crypto administration could accelerate timelines, but the extent of such changes remains unclear. Bloomberg analyst James Seyffart also commented on the possibility of multi-asset index ETFs, such as those that invest in BTC, ETH, and other cryptocurrencies including SOL and XRP. Some products that have filed for ETF conversion, such as Grayscale’s GDLC and Bitwise’s Crypto 10 Index, may not be as affected by regulatory issues because they have heavy exposure to Bitcoin and Ethereum.
Regulatory concerns could ease
Regulatory concerns about altcoins in these index ETFs could be eased if the majority of the fund’s allocation remains in Bitcoin and Ethereum, he explained. However, SEC approval for these products will likely depend on whether the agency deems smaller altcoin holdings to be compliant with current rules. Seyffart was hopeful, though not too sure, about the approval of altcoin ETFs, noting that everything will be determined by the new SEC administration. According to him, the first decisions on ETFs for XRP, SOL, LTC, and HBAR could be made in 2025, but the frequency of such decisions will depend on changes in leadership and the overall regulatory landscape.
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