XRP News Today: Crypto ETF Approval Odds Surge to 90% Amid Pro-Crypto Shift at SEC

The likelihood of US regulators approving a wave of crypto exchange-traded funds (ETFs) is now a near certainty, signaling a continued pro-crypto shift at the Securities and Exchange Commission (SEC), according to analysts Erich Balchunas and James Seyffart. In a social media post on Friday, Seyffart said he and Balchunas have raised their odds for the vast majority of crypto ETF approvals to “90% or higher,” citing “very positive” engagement from the SEC. The analysts also suggested that the SEC “likely” views cryptocurrencies such as Litecoin (LTC), Solana (SOL), XRP (XRP), and Dogecoin (DOGE) as commodities — a designation that would place them outside of its immediate jurisdiction.

Seyffart noted that the timing of approvals and the launch of spot products remains unclear. He speculated the process could take several months and may extend beyond October. The success of Bitcoin ETFs has sparked an industry race to list altcoin funds. Asset managers are seeking to replicate the success of the spot Bitcoin (BTC) ETFs, which saw demand far exceed expectations in the first year, culminating in the most successful US ETF launch of all time. BlackRock’s iShares Bitcoin Trust, which trades under the ticker IBIT, has been the most successful product. In June, it surpassed $70 billion in assets after recording 31 straight days of inflows. As Balchunas noted, IBIT reached that milestone in just 341 days.

However, Bitcoin’s success may be difficult to replicate, given the lukewarm demand for Ether (ETH) ETFs since they launched last July. Although ETF inflows have improved in recent months, the average ETH ETF investor remained “substantially underwater” by May. While demand for other crypto assets could eventually outpace Ether, altcoins are unlikely to erode Bitcoin’s dominance in the ETF market anytime soon. Nevertheless, investors are keeping a close eye on several proposals, such as Franklin Templeton’s XRP and SOL ETFs, which were recently opened for public comments by the SEC.

The odds of approval for a vast majority of crypto ETFs have surged to 90% or higher, according to analysts. This significant shift in sentiment is attributed to a perceived pro-crypto stance from the regulatory body. The analysts, Erich Balchunas and James Seyffart, have cited various factors contributing to this heightened optimism. One key factor is the increasing institutional interest in cryptocurrencies, which has led to a growing demand for regulated investment products. Additionally, the regulatory environment has shown signs of becoming more favorable towards crypto assets, with recent developments indicating a willingness to engage with the industry.

The approval odds for specific cryptocurrencies have also been highlighted. For instance, Solana (SOL) and Litecoin (LTC) spot ETF filings are assigned a 90% approval chance, while XRP has an 85% chance. This variation in approval odds reflects the different regulatory considerations and market dynamics associated with each cryptocurrency. The legal momentum from recent settlements, such as Ripple's with the SEC, has further reinforced the likelihood of U.S. approval for these ETFs.

The growing industry interest in Solana ETFs is another notable development. VanEck's Solana ETF, for example, has recently hit the Depository Trust & Clearing Corporation (DTCC) list, indicating a significant step towards potential approval. This move has been met with enthusiasm from industry participants, who see it as a positive signal for the broader crypto ETF landscape.

The surge in approval odds for crypto ETFs is not without its challenges. The regulatory process remains complex and subject to various uncertainties. However, the current trajectory suggests a more favorable outlook for the approval of these investment products. As the industry continues to evolve, the approval of crypto ETFs could mark a significant milestone in the mainstream adoption of digital assets.