Experts Unveil Altcoin ETF Approval Odds: Litecoin Tops The List, Followed By Dogecoin

Bloomberg exchange-traded fund (ETF) analysts James Seyffart and Eric Balchunas have evaluated the prospects for the altcoin ETF applications submitted by major asset managers these last months. 

Their analysis reveals a growing optimism regarding the regulatory landscape for these financial products, particularly with Litecoin (LTC) ETFs emerging as the frontrunner for potential approval.

Analysts Forecast Positive Outlook For ETF Applications

In a recent post on X (formerly Twitter), Balchunas shared insights indicating that Litecoin holds a significant 90% chance of receiving regulatory approval. 

Following closely behind are Dogecoin (DOGE), Solana (SOL), and XRP, which have approval probabilities of 75%, 70%, and 65%, respectively, suggesting a significant shift in sentiment toward these altcoin ETF applications compared with Biden’s administration.

Seyffart on the other hand, emphasized the importance of these developments, noting that the implications of these approval probabilities are substantial. 

He mentioned that the US Securities and Exchange Commission (SEC) is expected to acknowledge filings for XRP and Dogecoin in the near future, potentially as early as this week, potentially paving the way for further examination and eventual approval of these altcoin ETFs.

Furthermore, Seyffart highlighted that the SEC, along with Commissioner Hester Peirce’s crypto task force, aims to clarify the ongoing complexities surrounding the classification of cryptocurrencies as securities versus commodities. 

This initiative could lead to resolutions from various lawsuits, especially the one between Ripple Labs and the SEC, by the end of 2025, providing a clearer regulatory framework for future altcoin ETF applications.

Interestingly, Seyffart also pointed out that the chances of approval for these altcoin ETF markets would have been drastically lower if Democrats were still in control of the regulatory landscape. 

The current political climate with President Donald Trump appears to be more favorable for cryptocurrency-related initiatives, giving rise to increased optimism among investors and asset managers.

DOGE Faces 30% Drop Amid Altcoin ETF Buzz

With growing excitement surrounding altcoin ETF applications, cryptocurrency prices have begun to rebound, particularly Litecoin (LTC), which is currently leading the charge. 

After experiencing a significant decline to as low as $90 earlier this month, Litecoin has demonstrated a remarkable 20% increase over the past seven days, successfully reclaiming the important $125 threshold.

XRP has also experienced positive movement, surging by 9% and trading just above its key support level of $2.50. This shows the potential to reach its previous all-time high of $3.40, a record set over seven years ago. Currently, XRP is approximately 25% away from achieving this milestone.

In contrast, Dogecoin, the leading memecoin, has faced the steepest decline among the altcoins. Over the past month, Dogecoin has plummeted nearly 30%, consolidating around the price of $0.262, with no clear signs of recovery in sight.

Solana has exhibited mixed performance, experiencing a 17% drop over the past two weeks. However, it remains just 30% shy of its all-time high of $293, reached on January 19. 

Despite these fluctuations, the potential approval of these altcoin ETF applications could lead to significant capital inflows from large-cap investors in the United States. 

Such developments could further elevate prices and potentially set new records, similar to the impact seen following the approval of Bitcoin ETFs more than a year ago.

Featured image from DALL-E, chart from TradingView.com