SEC to Classify Litecoin as Commodity, Boosting Altcoin ETF Approvals
The SEC is set to reclassify major altcoins—Litecoin (LTC), Solana (SOL), XRP (XRP), Dogecoin (DOGE) and Cardano (ADA)—as commodities under CFTC oversight. Bloomberg analysts Erich Balchunas and James Seyffart put the odds of new crypto ETF approvals above 90%, citing very positive SEC feedback. This commodity designation will streamline spot crypto ETF launches beyond Bitcoin, whose iShares Bitcoin Trust has amassed over $70 billion in assets. Ethereum ETFs have shown mixed results and cautious investor sentiment. Proposed XRP and Solana ETFs are currently under SEC review and may take several months to clear the “first-to-file” regulatory process. Traders should watch this shift closely, as clearer commodity classification and high ETF approval odds could trigger significant institutional inflows and reshape the US crypto ETF landscape.
Bullish
Reclassifying LTC, SOL, XRP, DOGE and ADA as commodities under the CFTC de-risks altcoin spot ETF approval, raising odds above 90%. With Bitcoin’s ETF model already proving successful, traders can expect accelerated launches of Solana and XRP funds. Institutional inflows could surge, driving short-term price spikes and bolstering long-term market infrastructure for altcoin ETFs.