"Litecoin, Dogecoin Surge as SEC Task Force Favors Commodity Status"
1min read Analysts are increasingly optimistic about the prospects of a Litecoin ETF, as Dogecoin gains favor over Solana and XRP in the eyes of the U.S. Securities and Exchange Commission (SEC).
The SEC's newly formed Crypto Task Force is expected to reclassify certain cryptocurrencies as commodities, which could benefit Litecoin and Dogecoin while potentially hurting Solana's chances. This shift in regulatory perspective has analysts favoring Litecoin for ETF approval, with Dogecoin surprisingly ranked above Solana and XRP.
Grayscale and Bitwise have recently submitted new ETF applications, signaling growing demand and potential SEC action in the near future. Analysts James Seyffart and Eric Balchunas have updated their ETF approval odds, with Litecoin leading the pack and Dogecoin surprisingly favored over Solana and XRP.
The ongoing debate over whether XRP is a security or a commodity will impact the approval of XRP ETFs. Since former Chair Gary Gensler left the SEC, there has been a surge of new ETF applications, with several firms intensifying their efforts to win popular ETFs. Bitwise has filed an application for a Dogecoin ETF, attempting to create the first meme coin ETF.
Previously, Seyffart and Balchunas predicted that a Litecoin ETF is most likely, and their case was strengthened when the SEC acknowledged a relevant 19b-4 filing. Litecoin's regulatory clarity makes its odds stronger, as it is already likely to be considered a commodity due to being a Bitcoin fork.
Surprisingly, the analyst pair ranked Dogecoin higher than Solana. Seyffart explained that the SEC is expected to acknowledge filings for XRP and Dogecoin this week. The SEC's Crypto Task Force is set to untangle the security vs. commodity implications of lawsuits by the end of 2025, which could significantly loosen regulatory scrutiny and put more cryptoassets under the CFTC's jurisdiction.
This would help Litecoin and Dogecoin but not Solana. Additionally, the SEC's ongoing legal fight with Ripple hurts the odds of an XRP ETF, as the lawsuit is based on whether XRP is a security or a commodity. Until the lawsuit is officially dropped, XRP ETFs might be less likely.
