SEC’s Clarification on Crypto Classification Boosts Outlook for Altcoin ETFs

The U.S. Securities and Exchange Commission (SEC) has recently provided clearer guidelines on the classification of cryptocurrencies, significantly improving the chances of approval for altcoin-based exchange-traded funds (ETFs). 

Analysts now predict high approval probabilities for ETFs focused on Litecoin, Dogecoin, Solana, and XRP, reflecting a growing institutional interest in regulated crypto investment products.

 High Approval Chances for Altcoin ETFs

According to analyst insights, the likelihood of SEC approval for altcoin ETFs is promising.

Litecoin ETF has a 90% chance of approval, which gives it the edge over the others. 

Dogecoin ETF is the second most probable altcoin to be approved, with a 75% chance.

Solana ETF takes the third spot with a 70% chance of approval.

The XRP ETF is the least likely to be approved, with a 65% chance of approval. This is due to Ripple’s ongoing lawsuit with the SEC.

These optimistic projections stem from the SEC’s acknowledgment of Litecoin and Solana ETF filings, which indicates a more favorable regulatory environment.

Commodity vs. Security Classification

A crucial factor in these approval prospects is the SEC’s classification of cryptocurrencies. Litecoin and Dogecoin are likely considered commodities rather than securities, similar to Bitcoin, which already has approved spot ETFs. 

This classification simplifies the regulatory pathway for ETFs based on these assets and boosts investor confidence in their approval.

Political Shift and Crypto-Friendly Policies

The recent political shift, including President Donald Trump’s return to office, has contributed to a more crypto-friendly regulatory landscape. 

His administration’s stance, coupled with the appointment of officials supportive of digital assets, has led to a surge in ETF applications for various cryptocurrencies. 

Multiple filings for Solana and XRP ETFs further reflect the increasing demand for regulated crypto investment products.

Expected Timeline for ETF Approvals

The SEC is expected to decide on the proposed Litecoin, Solana, XRP, and Dogecoin ETFs between October 2 and October 18, 2025. 

Given the current regulatory momentum, a Litecoin ETF could potentially launch before these dates, setting a precedent for other altcoin ETFs.

Also read: What Memecoin ETF Approvals Mean for the Future of Crypto.