Bloomberg analysts have released their predictions for altcoin exchange-traded funds (ETFs) in 2025, with Litecoin (LTC) leading the race with a 90% probability of approval, while XRP trails with a 65% chance[1][6]. The potential approval of cryptocurrency ETFs has become a hot topic, especially as regulatory bodies like the U.S. Securities and Exchange Commission (SEC) examine the digital asset market[2].
### Litecoin (LTC)
Litecoin's high probability is due to its similarities to Bitcoin, using the proof-of-work (PoW) consensus mechanism[2]. The SEC has acknowledged the 19b-4 forms of Litecoin ETF, further boosting approval odds[1]. Because Litecoin is a fork of Bitcoin, analysts believe it is likely to be considered a commodity since it carries the same proof-of-work consensus algorithm and did not conduct any pre-sales[1][6]. If approved, a Litecoin ETF could provide institutional investors with a regulated way to gain exposure to LTC, potentially driving higher adoption and market liquidity[2].
### XRP
XRP ETFs have a 65% chance of approval[1]. CoinShares, in collaboration with Nasdaq, has filed for two ETFs focused on XRP and Litecoin[3]. Approving these ETFs would eliminate the complex requirement to manage private keys or wallets[3]. This would allow investors to easily gain exposure to XRP and Litecoin, which could increase institutional investment[3].
### Market Impact and Regulatory Environment
The odds of altcoin ETF approval were less than 5% prior to the election, so these are relatively good odds that will likely grow as they go through the typical process[1]. The successful introduction of Bitcoin and Ethereum spot ETFs in 2024 has set a precedent for other crypto assets[3]. This is because the approvals indicated that regulatory bodies are willing to engage with well-structured proposals, paving the way for altcoin-focused ETFs[3].
