The cryptocurrency market is buzzing after XRP surged to a $157.8 billion market capitalization following the U.S. Securities and Exchange Commission’s (SEC) acknowledgment of Grayscale’s exchange-traded fund (ETF) applications for both XRP and Dogecoin. While this move doesn’t equate to approval, it signals a potential shift in the regulatory landscape—one that could open the floodgates for more altcoin ETFs in 2025.
Analysts interpret the SEC’s acknowledgment as a positive development, especially given the agency’s historically strict stance on crypto-related financial products under former Chair Gary Gensler. The fact that the SEC has formally accepted the filings for review suggests the door may be cracking open for broader crypto adoption through regulated investment vehicles.
👉 Discover how regulatory shifts could unlock the next wave of crypto investment opportunities.
Why SEC Acknowledgment Matters
When the SEC acknowledges an ETF application, it means the filing is complete and officially under review. This step alone doesn’t guarantee approval—but it’s a necessary milestone. In previous years, applications for altcoins like XRP were often dismissed outright or met with immediate requests for withdrawal. This time, the process is moving forward.
Bloomberg Intelligence analyst Eric Balchunas noted that the acknowledgment increases the odds of approval, even if only slightly. “That’s a good sign in the case as these altcoins, which in the past have been told to withdraw right after filing, bumps up slightly our — already pretty good — odds of approval,” Balchunas stated on X (formerly Twitter).
This shift may be linked to broader political changes, including Donald Trump’s 2024 election win and his public support for pro-crypto policies. His administration has pledged to ease regulatory pressure on digital assets, creating a more favorable environment for innovation and institutional adoption.
The Growing Wave of Altcoin ETF Applications
In 2025, ETF issuers have submitted a wave of applications targeting major altcoins such as XRP, Solana (SOL), Dogecoin (DOGE), and Litecoin (LTC). These filings reflect growing investor demand for diversified crypto exposure through traditional financial instruments.
Balchunas used a baseball analogy to describe the current status: “All of them are rounding first base, except for Litecoin which is headed to third.” This suggests Litecoin is leading the pack in terms of regulatory readiness.
Litecoin: The Front-Runner for Approval
Launched in 2011 as one of the earliest Bitcoin clones, Litecoin is widely regarded as the original altcoin. Its technical similarities to Bitcoin—such as proof-of-work consensus and fixed supply—make it more likely to be classified as a commodity rather than a security.
This classification is critical. If a digital asset is deemed a commodity, it falls outside the SEC’s strict securities regulations, significantly simplifying the path to ETF approval.
Balchunas and fellow Bloomberg analyst James Seyffart estimate a 90% chance of a Litecoin ETF being approved in 2025. Prediction markets echo this optimism: Polymarket shows an 87% probability of a Litecoin ETF launch this year.
The SEC’s recent acknowledgment of Canary Capital’s Litecoin ETF application further reinforces this momentum.
Dogecoin: Meme Coin with Real Potential
Despite its origins as a joke cryptocurrency, Dogecoin has evolved into a serious contender in the ETF race. With strong community support and increasing merchant adoption, DOGE has gained legitimacy in the eyes of regulators and investors alike.
Analysts give Dogecoin a 75% chance of ETF approval, with Polymarket pricing in a 71% likelihood. Grayscale’s formal application adds credibility to the case, positioning Dogecoin as the second-most likely altcoin to receive the green light.
👉 See how meme coins are transforming into mainstream investment assets.
Solana and XRP: Strong Contenders Despite Legal Hurdles
Solana (SOL) and XRP follow closely behind, with approval odds estimated at 70% and 65%, respectively. Interestingly, prediction markets are even more bullish—Polymarket assigns an 82% chance to a Solana ETF and 81% to an XRP ETF in 2025.
XRP’s journey has been particularly turbulent due to Ripple Labs’ ongoing legal battle with the SEC over whether XRP qualifies as an unregistered security. However, recent court rulings have leaned in Ripple’s favor, suggesting XRP may not be a security after all—a crucial precedent for ETF approval.
Solana faces fewer legal challenges but must overcome questions about network stability and decentralization—key concerns for regulators evaluating ETF suitability.
Key Factors Influencing Altcoin ETF Approvals
Several elements determine whether an altcoin ETF will gain SEC approval:
- Commodity vs. Security Classification: Assets viewed as commodities (like Bitcoin and potentially Litecoin) face fewer regulatory hurdles.
- Market Maturity and Liquidity: High trading volume and deep liquidity reduce manipulation risks—a top SEC concern.
- Transparency and Governance: Projects with clear leadership, open-source code, and active development teams are favored.
- Regulatory Precedent: The approval of Bitcoin spot ETFs in early 2024 set a powerful precedent for other digital assets.
These factors collectively shape the SEC’s risk assessment—and explain why some altcoins are closer to approval than others.
Frequently Asked Questions (FAQ)
Q: Does SEC acknowledgment mean an ETF is approved?
A: No. Acknowledgment means the application is complete and under review. It’s an early step—not a guarantee of approval.
Q: Why is Litecoin leading in ETF approval odds?
A: Due to its structural similarity to Bitcoin and low risk of being classified as a security, Litecoin has a clearer regulatory path.
Q: Can meme coins like Dogecoin really get an ETF?
A: Yes. Despite its origins, Dogecoin has significant market presence and community backing, making it a viable candidate under evolving regulatory standards.
Q: How does political change affect crypto regulation?
A: A pro-crypto administration can influence SEC leadership and policy direction, increasing the likelihood of favorable rulings on digital asset products.
Q: Will XRP’s legal history hurt its ETF chances?
A: Past litigation creates complexity, but recent court decisions favoring Ripple improve XRP’s prospects by supporting its classification as a non-security.
Q: When can we expect altcoin ETF decisions?
A: Most decisions are expected between mid-2025 and early 2026, depending on review timelines and public comment periods.
👉 Stay ahead of the next major crypto regulatory milestone—explore what’s coming in 2025.
Final Outlook: A New Era for Crypto Investing?
The acknowledgment of Grayscale’s XRP and Dogecoin ETF filings marks a pivotal moment in crypto’s institutional evolution. While challenges remain, the trajectory points toward greater acceptance of digital assets within traditional finance.
With Litecoin leading the charge, followed by Dogecoin, Solana, and XRP, 2025 could become the year altcoins finally break through the ETF barrier. For investors, this opens new avenues for exposure without sacrificing regulatory safeguards.
As sentiment shifts and political winds favor innovation, the crypto industry may be on the cusp of its most transformative phase yet—one where even meme coins and legacy altcoins gain legitimacy through regulated financial products.
Core Keywords: XRP ETF, altcoin ETF, SEC approval, Litecoin ETF, Dogecoin ETF, Solana ETF, cryptocurrency regulation