Bloomberg Analysts Anticipate 95% Approval Odds for Litecoin ETF by 2025

Bloomberg Intelligence analysts Eric Balchunas and James Seyffart have increased their confidence in the U.S. Securities and Exchange Commission (SEC) approving a spot exchange-traded fund (ETF) for Litecoin (LTC) to an impressive 95% by 2025. This prediction aligns Litecoin with heavyweights like XRP and Solana, indicating a possible regulatory shift favoring altcoin ETFs.

Increased SEC Engagement Fuels Optimism

The analysts point to the SEC’s heightened interaction with ETF applications as the reason for their optimism, representing a significant departure from past ambivalence. According to Seyffart, “We’re now at 95% odds for approval of spot ETFs for XRP, Solana, and Litecoin in 2025. The SEC’s overt engagement with these applications is a very positive signal.” The regulatory body has asked for revised public comments and technical insights from applicants, including Fidelity and Grayscale, showcasing a more open attitude toward such financial products.

Potential Market Impacts

The approval of Litecoin ETFs would offer both institutional and retail investors the opportunity to access LTC without the burden of managing private keys, akin to existing Bitcoin and Ethereum ETFs. These prior ETF approvals have already ignited considerable market growth, with Bitcoin ETFs holding over $100 billion in assets. Analysts posit that a Litecoin ETF could similarly bolster market credibility, potentially drawing substantial new investments.

Although recent market pressures have challenged Litecoin, testing its $85 support level, the ETF news is expected to stimulate positive long-term sentiment by attracting institutional backing. Additionally, Litecoin benefits from a relatively clear regulatory environment and technical strength, including established infrastructure and a definitive use-case, enhancing its suitability for an ETF.

Regulatory Evolution

The SEC’s collaborative approach is a marked contrast to its earlier positions, potentially laying the groundwork for broader altcoin ETF approvals by 2025. This could elevate Litecoin beyond mere speculative trading, entrenching its role as a mainstream financial asset.

While the precise timing of the SEC’s final decision remains uncertain, with deadlines anticipated in October and November, analysts convey confidence: approving Litecoin spot ETFs seems like a question of “when,” not “if.”

Sources

• Daily Hodl, June 21, 2025
• Crypto Rank, 2025
• Crypto Briefing
• Crypto News
• A Invest
• A Invest, XRP News Today
• A Invest, Bloomberg Analysts