Litecoin (LTC) Exchange-Traded Fund (ETF) May Receive Regulatory Clearance Before Ripple’s (XRP)

An exchange-traded fund (ETF) for Litecoin (LTC) may receive regulatory clearance before one for Ripple's XRP, according to a Bloomberg analyst.

A new exchange-traded fund (ETF) for Litecoin (CRYPTO: LTC) could hit the market before one for Ripple's (CRYPTO: XRP) XRP token, according to a Bloomberg analyst.

Grayscale recently filed a request with the U.S. Securities and Exchange Commission to convert its $16.1 million XRP trust into an exchange-traded fund, Fortune reported.

Other crypto ETFs, including those for Litecoin, Solana (CRYPTO: SOL) and Dogecoin (CRYPTO: DOGE), are also up for approval from various companies.

The push comes as the Trump administration ushers in what many view as a more crypto-friendly era in the U.S.

Monica Long, president of Ripple, said last month that she was hopeful an XRP ETF would follow Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) as the next big thing.

However, James Seyffart, a Bloomberg analyst, is still skeptical.

Regulatory Challenges Could Hinder XRP ETF Progress

Seyffart said the SEC’s classification of XRP as a security could delay an ETF launch. He also pointed to Ripple’s ongoing legal battle with the SEC as another hurdle.

“There’s some more work that needs to be done on that front that doesn’t need to happen with something like Litecoin. The SEC has never called Litecoin a security, so I wouldn’t be surprised if you see Litecoin come first,” Seyffart said.

Despite these obstacles, he said an XRP ETF could still be possible in 2024. If regulatory clarity improves, XRP could still secure approval — but Litecoin appears to have a smoother path forward.