US Crypto ETF Approval Odds Surge to ‘90% or Higher’
Bloomberg analysts Erich Balchunas and James Seyffart have raised their predictions for crypto exchange-traded funds (ETFs) approval in the United States to ‘90% or higher’. Their optimism stems from ‘very positive’ engagement with the Securities and Exchange Commission (SEC), indicating a favorable shift in regulatory stance toward cryptocurrencies.
SEC’s Commodity Classification for Cryptocurrencies
The analysts note the SEC likely considers Litecoin (LTC), Solana (SOL), XRP (XRP), and Dogecoin (DOGE) as commodities. This classification could streamline their inclusion in ETFs by placing them outside the SEC’s direct oversight.
Bitcoin ETFs Set Precedent for Altcoin Funds
The remarkable success of spot Bitcoin (BTC) ETFs, highlighted by BlackRock’s iShares Bitcoin Trust (IBIT) surpassing $70 billion in assets, has inspired asset managers to pursue similar altcoin funds. However, the tepid response to Ether (ETH) ETFs since their launch suggests challenges ahead.
Future Prospects for Crypto ETFs
While the timeline for approvals remains unclear, the SEC’s review of proposals like Franklin Templeton’s XRP and SOL ETFs signals growing interest in expanding the crypto ETF market. Analysts, however, caution that altcoins are unlikely to challenge Bitcoin’s market dominance soon.
