Litecoin ETF Likely to Get Approval Before XRP, Says Bloomberg Analyst

A Litecoin-based exchange-traded fund (ETF) could receive regulatory approval before a similar product for XRP, according to Bloomberg analyst James Seyffart.

Reports indicate that Grayscale has formally submitted an application to the U.S. Securities and Exchange Commission (SEC) to transition its $16.1 million XRP trust into an ETF. The filing comes as multiple firms, including those backing Litecoin, Solana, and Dogecoin, push for new crypto ETFs amid shifting sentiment under the pro-crypto Trump administration.

While Ripple’s president, Monica Long, previously suggested that XRP could be the next digital asset to secure ETF approval after Bitcoin and Ethereum, Seyffart remains skeptical. He points out that the SEC still classifies XRP as a security, creating a significant hurdle for regulatory approval. Additionally, Ripple’s ongoing legal battle with the SEC adds further uncertainty to the asset’s ETF prospects.

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Seyffart believes Litecoin has a clearer path, as it has never been designated a security by regulators. “There’s less regulatory baggage with Litecoin,” he explained, suggesting that it stands a better chance of receiving the green light before XRP.

Despite these concerns, Seyffart does not rule out the possibility of an XRP ETF launching in 2025, though he acknowledges that further regulatory developments would be necessary.

Alexander Stefanov