A Litecoin-based exchange-traded fund (ETF) might obtain regulatory approval earlier than an analogous product for XRP, in response to Bloomberg analyst James Seyffart.
Stories point out that Grayscale has formally submitted an utility to the U.S. Securities and Trade Fee (SEC) to transition its $16.1 million XRP belief into an ETF. The submitting comes as a number of companies, together with these backing Litecoin, Solana, and Dogecoin, push for brand spanking new crypto ETFs amid shifting sentiment below the pro-crypto Trump administration.
Whereas Ripple’s president, Monica Lengthy, beforehand advised that XRP might be the subsequent digital asset to safe ETF approval after Bitcoin and Ethereum, Seyffart stays skeptical. He factors out that the SEC nonetheless classifies XRP as a safety, creating a major hurdle for regulatory approval. Moreover, Ripple’s ongoing authorized battle with the SEC provides additional uncertainty to the asset’s ETF prospects.
Seyffart believes Litecoin has a clearer path, because it has by no means been designated a safety by regulators. “There’s much less regulatory baggage with Litecoin,” he defined, suggesting that it stands a greater probability of receiving the inexperienced mild earlier than XRP.
Regardless of these considerations, Seyffart doesn’t rule out the potential for an XRP ETF launching in 2025, although he acknowledges that additional regulatory developments could be mandatory.
