Spot Crypto ETF Watch: 3 Cryptocurrencies That Could Be Next on the SEC's Approval List

The U.S. Securities and Exchange Commission (SEC) has made significant strides in approving spot Bitcoin and Ethereum exchange-traded funds (ETFs) in 2024, paving the way for a potential boom in new ETFs within the cryptocurrency sector in 2025. Industry insiders anticipate a surge in innovation and growth in the crypto ETF market, with the possibility of approvals for ETFs linked to multiple cryptocurrencies. As the crypto ETF landscape continues to evolve, investors and market participants are eagerly awaiting the SEC's decisions on several promising cryptocurrencies. Here, we explore three cryptocurrencies that could be next on the SEC's approval list for spot ETFs: XRP, Solana, and Litecoin.



1. XRP:
- Market cap: $130 billion (4th largest)
- Regulatory uncertainty: Ongoing legal dispute with the SEC over its security status
- ETF prospects: 65% chance of approval in 2025, with potential inflows of $8 billion
- XRP's market cap and significant investor interest make it an attractive candidate for an ETF. However, the ongoing legal dispute with the SEC over its security status has hindered its path to approval. A resolution or clarification on XRP's status could significantly impact the SEC's decision and boost investor confidence in XRP.

2. Solana:
- Market cap: $70 billion (6th largest)
- Regulatory uncertainty: SEC suggested it might be a security in June 2023
- ETF prospects: 70% chance of approval in 2025, with potential inflows of $6 billion
- Solana's market cap and strong network activity position it as a strong contender for ETF approval. However, concerns about its legal classification and ongoing legal disputes could delay SEC approval, potentially pushing it back to 2026.

3. Litecoin:
- Market cap: Not specified, but it's a smaller-cap crypto
- Regulatory status: Unanimously considered a commodity, not a security
- ETF prospects: 90% chance of approval, with a potential launch in mid-July
- Litecoin's smaller market cap and underperformance compared to XRP and Solana may impact investor demand for its ETF. However, its regulatory advantages and potential launch in mid-July could attract new investors and boost its value.



The SEC's recent pro-crypto stance and the approval of Bitcoin and Ethereum ETFs have opened the door for further changes in the crypto ETF market. Several factors could influence the agency's decision-making process regarding the approval of XRP, Solana, and Litecoin ETFs, which in turn could impact the broader crypto market. These factors include regulatory classification and legal clarity, market demand and investor interest, market performance and controversy, and institutional investment thesis.

In conclusion, the SEC's decision-making process regarding XRP, Solana, and Litecoin ETFs will likely be influenced by factors such as regulatory classification, market demand, and market performance. Approving these ETFs could have a significant impact on the broader crypto market by attracting more investors, increasing liquidity, and fostering greater mainstream adoption. However, the specific outcomes will depend on how these factors play out in the coming months and years. As the crypto ETF landscape continues to evolve, investors and market participants should stay informed about the latest developments and regulatory decisions regarding XRP, Solana, and Litecoin ETFs.