A recent report from Bloomberg suggests that a Litecoin (LTC) exchange-traded fund (ETF) may receive regulatory approval before a similar product for Ripple’s XRP. Fortune magazine revealed that Grayscale, an asset manager, has filed a petition with the U.S. Securities and Exchange Commission (SEC) to convert its $16.1 million XRP trust into an ETF.
In addition to Grayscale, several other companies are seeking approval for new crypto ETFs, including those for Litecoin, Solana (SOL), and Dogecoin (DOGE). This surge in ETF applications comes as the United States enters a more crypto-friendly era under the Trump administration.
Despite Ripple president Monica Long’s optimism about XRP being the next cryptocurrency to secure an ETF approval after Bitcoin (BTC) and Ethereum (ETH), Bloomberg analyst James Seyffart is less hopeful. The SEC still considers XRP a security, which could pose a challenge for XRP-based ETFs to gain approval. Moreover, Ripple is currently embroiled in legal disputes with the SEC, further complicating the approval process.
Seyffart believes that Litecoin may have a better chance of securing an ETF approval since the SEC has never classified it as a security. He suggests that the regulatory hurdles facing XRP may give Litecoin an edge in obtaining approval first.
While Seyffart does not foresee immediate approval for XRP ETFs, he remains open to the possibility of XRP receiving approval sometime this year. As the crypto market continues to evolve, the approval of ETFs for various cryptocurrencies could provide investors with more diversified investment options.
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