The cryptocurrency market is bracing for a major regulatory shift in 2025, with industry experts predicting a new wave of crypto exchange-traded funds (ETFs) could soon gain approval from the U.S. Securities and Exchange Commission (SEC). While Bitcoin and Ethereum ETFs have already paved the way, attention is now turning to altcoins—and not all are expected to cross the finish line at the same time.
According to Bloomberg senior ETF analysts Eric Balchunas and James Seyffart, the next phase of crypto ETF approvals may favor certain assets over others based on their regulatory positioning. While many investors are eager for Solana ($SOL) and XRP ETFs, the analysts suggest that **Litecoin ($LTC) and Hedera ($HBAR)** could actually be first in line—thanks to their more favorable legal standing.
Why Bitcoin + Ethereum Combo ETFs May Lead the Charge
Before diving into altcoin-specific funds, experts anticipate that combined Bitcoin-Ethereum ETFs will likely be among the first new approvals in 2025. Proposed by major financial players like Hashdex, Franklin Templeton, and Bitwise, these dual-asset ETFs represent a natural evolution of the current crypto ETF landscape.
“We expect a wave of cryptocurrency ETFs next year, albeit not all at once. First out is likely the BTC + ETH combo ETFs, then probably Litecoin (because it’s a fork of BTC = commodity), then HBAR (because not labeled security), and then XRP/Solana (which have been labeled securities in pending cases),”
— Eric Balchunas, Bloomberg Senior ETF Analyst
Although the SEC has not officially classified Ethereum as a commodity, its treatment in practice—especially following the approval of spot Ethereum ETFs in 2024—suggests regulators view it similarly to Bitcoin. This regulatory clarity (or at least, relative comfort) makes combined BTC-ETH products a low-hanging fruit for approval.
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Litecoin and Hedera: Regulatory Advantages in Focus
After Bitcoin and Ethereum-based products, the spotlight turns to altcoins with stronger arguments for commodity classification.
Why Litecoin ($LTC) Stands Out
Litecoin was created as a direct fork of Bitcoin’s codebase, making it technically and philosophically aligned with BTC. This connection is critical: because the SEC has consistently maintained that Bitcoin is not a security, assets derived from it—especially those without centralized development teams or fundraising mechanisms—may inherit similar regulatory treatment.
As Balchunas notes, Litecoin's status as a "BTC fork" strengthens its case as a commodity, reducing legal risk for ETF issuers. Despite this advantage, however, demand remains a concern. To date, only Canary Capital has filed for a Litecoin ETF, indicating limited institutional interest compared to other major altcoins.
Why Hedera ($HBAR) Could Be Fast-Tracked
Hedera’s path to potential ETF approval hinges on one key factor: it hasn’t been labeled a security by the SEC under Gary Gensler’s tenure.
Unlike XRP or Solana, which are actively involved in litigation where the SEC argues they qualify as unregistered securities, HBAR has avoided such scrutiny. The Hedera governing council includes firms like Google and IBM, lending credibility and decentralization to the network—an important factor in avoiding security classification under U.S. law.
While no formal guidance exists yet, the absence of enforcement action gives HBAR a regulatory edge. Analysts believe this “clean slate” status significantly increases its chances of early approval—assuming sufficient investor demand emerges.
Why $SOL and $XRP ETFs May Lag Behind
Despite strong community support and growing adoption, Solana ($SOL) and XRP face significant regulatory hurdles that could delay their ETF approvals well beyond 2025.
Solana: Caught in the Securities Net
The SEC has repeatedly classified Solana as a security in various lawsuits involving crypto exchanges. In filings related to cases against Coinbase and Binance, the regulator argued that SOL meets the Howey Test criteria due to its initial distribution model and ongoing ecosystem development funded by centralized entities.
Until these legal questions are resolved—either through court rulings or regulatory clarification—ETF issuers will likely hesitate to pursue SOL-based products. The uncertainty creates too much risk for traditional financial institutions seeking SEC approval.
XRP: Lingering Legal Cloud
XRP’s situation is even more complex. While Ripple won a partial victory in 2023 when a judge ruled that XRP sales to retail investors did not constitute unregistered securities offerings, the SEC has appealed that decision. Additionally, institutional sales were found to violate securities laws.
This mixed outcome leaves XRP in regulatory limbo. Although it’s not entirely classified as a security, parts of its distribution history remain contested. As long as the appeal continues, ETF sponsors may view XRP as too legally risky for product development.
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FAQ: Your Questions About Upcoming Crypto ETFs Answered
Q: Will there be any new crypto ETFs approved in 2025?
A: Yes, analysts expect a wave of new crypto ETFs in 2025, starting with BTC+ETH combo funds, followed by Litecoin and Hedera if regulatory conditions allow.
Q: Why is Litecoin considered more likely than XRP for ETF approval?
A: Litecoin is seen as a commodity due to its direct lineage from Bitcoin, while XRP remains entangled in ongoing SEC litigation over securities classification.
Q: Has the SEC officially said HBAR isn’t a security?
A: No formal ruling exists, but the lack of enforcement action or public statements labeling HBAR as a security gives it a regulatory advantage over assets like SOL or XRP.
Q: Can Solana ever get an ETF approved?
A: It’s possible—but only after legal disputes are resolved and clearer guidance emerges on whether SOL qualifies as a commodity or security.
Q: Who benefits most from faster ETF approvals?
A: Investors gain access to regulated exposure; issuers earn management fees; and the broader crypto market gains legitimacy and institutional inflows.
Q: Are memecoin ETFs possible in the future?
A: Under a more crypto-friendly administration, even memecoin ETFs could become feasible long-term—though they remain highly speculative for now.
A New Era Under Pro-Crypto Leadership?
With President-elect Donald Trump appointing pro-innovation figures to key financial roles—including David Sacks as White House Crypto Czar and Paul Atkins as potential SEC chair—the stage is set for a friendlier regulatory environment.
Atkins, a former SEC commissioner, is known for advocating market-driven regulation and technological advancement. If confirmed, his leadership could accelerate approvals for pending crypto ETFs and bring much-needed clarity to digital asset classifications.
This shift signals growing recognition of crypto’s role in the global financial system—not just as speculative assets but as foundational components of next-generation finance.
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Final Thoughts
While investor excitement around Solana and XRP remains high, regulatory realities suggest that Litecoin and Hedera may beat them to ETF approval in 2025. Their structural simplicity and lack of active litigation give them a crucial edge in a risk-averse regulatory landscape.
As the U.S. transitions to new leadership at both the executive and SEC levels, the door is opening for broader crypto adoption through regulated financial products. For investors, staying informed about these developments isn’t just smart—it’s essential.
The road to mainstream crypto investing continues to evolve, one approved ETF at a time.
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