Litecoin Price Surges 12% as Analysts Predict It’s Most Likely for ETF Approval

Litecoin has experienced a significant price surge of 12% following the release of analyst James Seyffart and Eric Balchunas’ rankings on the likelihood of several altcoin exchange-traded funds (ETFs) receiving approval from the U.S. Securities and Exchange Commission (SEC). Litecoin now leads the pack in ETF approval odds, with a 90% chance of SEC approval, which has driven the token’s notable increase.

According to Seyffart and Balchunas, Litecoin’s high probability of approval is largely due to its status as a Bitcoin fork, which the SEC regards as a commodity. Given Litecoin’s similarities to Bitcoin, analysts believe it could be regulated similarly, improving its chances of receiving ETF approval.

Following Litecoin’s surge, other cryptocurrencies like Dogecoin (DOGE), Solana (SOL), and Ripple (XRP) also saw price increases, although to a lesser extent. Dogecoin rose by 5.7%, Solana gained 0.3%, and Ripple saw a 2.7% uptick.

Dogecoin’s chances of approval (75%) have been notably high, surprising many due to its meme coin status. However, Seyffart and Balchunas argue that the SEC’s evolving stance on crypto assets, under Hester Peirce’s Crypto Task Force, plays a role in Dogecoin’s strong approval prospects. This task force is focused on clarifying whether cryptocurrencies should be classified as securities or commodities. If Dogecoin is classified as a commodity, as analysts expect, its approval odds for an ETF increase, especially since the Commodity Futures Trading Commission (CFTC) is generally seen as more lenient than the SEC in regulating commodities.

In contrast, Solana’s ETF approval prospects are weaker, with a 70% chance of approval, due to its regulatory status, which is not as favorable as that of Bitcoin or Dogecoin. Solana has yet to receive the same level of clarity from the SEC regarding its classification.

Ripple’s approval prospects are even more uncertain, as it remains embroiled in an ongoing legal battle with the SEC. This lawsuit has significantly reduced the chances of an XRP ETF approval, with analysts giving it a 65% chance. The outcome of the legal dispute could ultimately determine XRP’s classification and, in turn, its eligibility for an ETF.