Crypto Optimism Surges: SEC's Gensler Exit Sparks Spot ETF Filings for XRP, Solana, Litecoin

Gary Gensler's departure from the SEC has sparked a wave of optimism in the crypto industry, with several altcoins, including XRP, Solana, and Litecoin, seeing filings for spot ETFs. However, the key question remains: will the SEC approve these products soon?

Nate Geraci, President of The ETF Store, believes that the approval of such ETFs depends largely on regulatory clarity. In an interview with Thinking Crypto, he suggested that Litecoin may be in a better position to receive approval, as it is seen as similar to Bitcoin, which is categorized as a non-security commodity. Additionally, there are no major legal challenges involving Litecoin at this moment, making it an attractive option for approval.

However, the situation is different for XRP, which is embroiled in ongoing legal issues. This adds a layer of complexity to the potential approval for spot ETFs. Despite these challenges, Geraci believes that all options are still on the table. The key factor will be how quickly the SEC can resolve questions about which cryptocurrencies are classified as securities versus commodities.

The timeline for approval remains uncertain, as the SEC has recently transitioned to new leadership under Chairman Paul Atkins. Geraci remains optimistic but notes that crypto will likely be a key focus, though the timeline is uncertain.

For spot crypto ETFs to be approved, there is no specific requirement for the underlying asset to have an existing futures market. Instead, the crucial element is a "surveillance sharing agreement" with a regulated market of significant size. This agreement ensures that market activities can be monitored effectively.

In summary, while it's not guaranteed, Geraci believes that additional spot crypto ETFs—including those for XRP, Solana, and Litecoin—are likely in the future. The crypto industry eagerly awaits the SEC's decision on these filings, as the approval of spot ETFs could significantly boost the adoption and mainstream acceptance of these altcoins.