Will Solana or Litecoin ETFs Launch First? SEC Timeline Revealed for 2025

2025-06-24

The crypto ETF spotlight is shifting from Bitcoin and Ethereum to the next contenders: Solana and Litecoin. Following the recent success of spot Bitcoin and Ethereum ETFs, investors are now speculating about which altcoin might be next.

As of mid-2025, the SEC is reviewing multiple applications for both Solana (SOL) and Litecoin (LTC) ETFs. But which one is likely to be approved first? And is either of them ready? Let’s take a closer look.

Solana and Litecoin: The ETF Contenders Gaining Attention

With Bitcoin and Ethereum paving the way for cryptocurrency ETFs, the logical next step is to look at other high-cap cryptocurrencies. Solana and Litecoin have emerged as frontrunners due to their long-standing market presence and relatively strong user bases. However, they are not on equal footing when it comes to ETF readiness.

Solana, with its fast-growing ecosystem and high-performance blockchain, has attracted substantial institutional interest. Several Solana ETF proposals have already been submitted to the SEC, some of which include innovative staking features that set them apart structurally from earlier crypto ETFs.

Analysts suggest this forward-looking design may give Solana a technical edge in gaining approval.

Litecoin, in contrast, has seen a more modest level of ETF interest. Its trust products currently trade at a discount, and they hold a relatively large percentage of LTC’s supply—about 2.65%. This opens the door to concerns about post-approval price instability if sell pressure builds.

Additionally, while Litecoin enjoys historical credibility as one of the oldest coins in circulation, its current volume and market cap—roughly $6 billion—raise questions about its viability as a major ETF product in the short term.

A key caution here: although filings exist for both Solana and Litecoin ETFs, key documentation like the whitepaper is either inaccessible or absent from some official proposal listings. Investors should be wary of this lack of transparency before jumping into speculative trades around ETF news.

Solana, Litecoin ETFs, SEC — Source: Blocknews.com

The SEC’s Role and the 2025 Approval Timeline

The U.S. Securities and Exchange Commission (SEC) remains the central gatekeeper for any crypto ETF approvals. In 2025, the Commission is reviewing nearly 100 digital asset ETF applications, including those for Solana and Litecoin.

While the mood has shifted towards openness—especially after the approval of Ethereum ETFs—there is no firm timeline for when decisions will be made for SOL or LTC.

Gary Gensler’s resignation earlier this year has slightly altered the regulatory tone. The incoming leadership appears more receptive to the idea of diverse crypto investment products, but caution still prevails. The SEC continues to prioritise investor protection, market manipulation concerns, and product clarity.

According to recent Bloomberg research, Solana holds approximately a 95% chance of ETF approval based on current regulatory sentiment and market conditions. Litecoin trails slightly with an estimated 83% chance. While both odds seem promising, it’s worth remembering these are speculative probabilities, not SEC guarantees.

Solana’s proposal is helped by cleaner trust metrics and a broader base of institutional filings. In contrast, Litecoin suffers from a more limited engagement pipeline and lesser excitement from asset managers. Even though the SEC has acknowledged both proposals, the lack of specific guidance or a published review schedule means the industry remains in a holding pattern.

Investors should remember that ETF approval is not only a matter of regulatory will. Market infrastructure, custody readiness, and pricing mechanisms also factor into final decisions. As it stands, Solana appears to be slightly ahead—but nothing is assured.

Trust Metrics, Adoption, and Market Demand: Why Solana Might Be Closer

Trust structures matter significantly in determining whether an asset can function as a successful ETF. The Grayscale Solana Trust currently holds just 0.1% of SOL’s total circulating supply. This low concentration lowers systemic risk and minimises potential market disruptions if the ETF were to be approved.

In comparison, Litecoin’s trust product holds over 2.5% of the total supply and has a history of trading at a discount. If approved, such a product could create downward price pressure, especially if large holders decide to sell. That creates a less attractive case from both a liquidity and stability perspective.

Adoption also plays a critical role. Solana has experienced increased traction with developers, decentralised applications, and NFTs—especially in 2024 and early 2025. It is one of the most frequently integrated blockchains in newer Web3 platforms and has been involved in several institutional pilot projects.

This wide usage base makes it a more appealing choice for ETF backers seeking to attract traditional investors.

Litecoin, although respected for its consistency and low transaction fees, has seen lower growth in ecosystem adoption. Many view it more as a transactional currency than a platform for innovation. This limits its upside in the eyes of ETF issuers who are seeking dynamic narratives to drive fund inflows.

Even so, no project is immune to criticism. Solana, for example, has faced several high-profile outages in recent years. Furthermore, its staking-inclusive ETF proposals add complexity, which the SEC might hesitate to approve without detailed analysis. As for Litecoin, its stability could be both a strength and a liability—it’s reliable, but not particularly innovative.

Conclusion

The race between Solana and Litecoin for ETF approval is closer than it seems, but Solana currently holds the advantage. With cleaner trust metrics, broader adoption, and more SEC filings, it appears to be better positioned for success.

However, no outcome is guaranteed. Investors should treat any speculation with caution, particularly given the lack of accessible whitepapers and transparency in certain ETF filings. While both coins offer potential, regulatory clarity and market readiness will ultimately decide who crosses the ETF finish line first in 2025.

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