Litecoin ETF First? XRP ETF Faces SEC Hurdles, Says Analyst

• Litecoin ETF could launch first as SEC hasn’t classified it as a security like XRP.  
• XRP ETF approval faces delays due to ongoing SEC lawsuits over its security status.  
• Ripple’s Monica Long believes an XRP ETF could be approved soon, along with other crypto ETFs.

Bloomberg Intelligence analyst James Seyffart has shared his thoughts on the possible approval timelines for crypto ETFs in the face of ongoing regulatory scrutiny. According to a Fortune report, Seyffart suggests that while an XRP ETF may see approval later, a Litecoin ETF could be the first to debut because Litecoin has not been registered as a security by the U.S. Securities and Exchange Commission (SEC).

Still, multiple firms have filed applications for new crypto ETFs. Grayscale Investments recently filed with the SEC to convert its XRP trust into an ETF that would trade on the New York Stock Exchange.

The trust holds about $16.1 million, giving investors access to XRP without requiring them to buy it directly. In addition to Grayscale’s filing for XRP, applications for ETFs based on Solana and Dogecoin have also been submitted.

Filings and What’s Happening in the Industry

Other asset managers like Bitwise, Wisdom Tree, and Canary Capital have filed proposals for XRP ETFs. On January 29, the SEC acknowledged Canary Capital’s application for a spot Litecoin ETF, kicking off the regulatory review process.

Related: Grayscale Files for XRP Spot ETF: Will XRP Price Rally on the News?

Seyffart noted that ongoing legal challenges concerning XRP, where the SEC asserts that the token qualifies as a security, may delay the approval of an XRP-based ETF. On the other hand, Litecoin’s status remains unchallenged.

Eric Balchunas confirmed that the SEC had provided feedback on the amended S-1 registration document for the Litecoin ETF filed by Canary Capital. The S-1 form, which details the financial structure of the fund, is the main step in the approval process.

SEC Lawsuits and How They Could Affect XRP ETFs

In the meantime, the SEC is currently examining Nasdaq’s 19b-4 application, an essential step for listing new financial products. But analyst James Seyffart notes that if Paul Atkins is confirmed as SEC chair, the agency might reconsider its current lawsuits related to XRP’s security classification.

Related: Litecoin ETF Approval in Sight as SEC Reviews Nasdaq Filing

Ripple President Monica Long recently expressed optimism about the approval of an XRP ETF, saying that it could happen soon. She expects the launch of multiple crypto spot ETFs, including one for XRP, shortly.