James Seyffart predicted that approval of the Litecoin ($LTC) ETF application would be before the $XRP ETF application despite the significant demand for $XRP over Litecoin.
The majority of the crypto companies, including fund managers, are taking advantage of Donald Trump’s ProCrypto stance as much as possible and also the Trump & Trump family increasing dominance in the crypto space through different crypto projects.
On 6 Jan 2025, Popular digital assets fund manager Grayscale Investment filed an application with the United States Securities and Exchange Commission (SEC) to convert its $16.1 million $XRP coin Trust into an ETF product to launch on the New York Stock Exchange.
Already, many experts predicted that there is an 81% chance for the approval of this application, but the latest prediction by Bloomberg ETF expert James Seyffart raised eyebrows in the XRP community.
Seyffart predicted the chances for approval for this application by this year is almost confirmed but claimed that the Litecoin spot ETF may get approval before the XRP ETF.
The Bloomberg analyst explained that a significant delay for $XRP is possible because of the $XRP lawsuit, a legal battle between San Francisco’s headquartered blockchain firm Ripple & the SEC body.
He stated that some significant delays for the approval of $XRP ETF is possible, as the SEC body called $XRP a unregistered security token multiple times but never called Litecoin a security token. So we should not be surprised if the Litecoin ETF gets approval before the XRP ETF.
It is worth it to note that, regarding this application, Ripple president Monica Long said that she thinks an XRP ETF is “next in line” and will be approved “very soon.”
$XRP lawsuit
$XRP lawsuit was started in Dec 2020 against Ripple firm. The SEC body alleged that Ripple controls the $XRP coin, so it was an unregistered security token. Also, the company & its executives faced allegations of selling $1.3 billion worth of unregistered $XRP tokens publicly.
After 3 years of a long battle, the SEC body & Ripple scored a partial victory in this case & The court judge dismissed the SEC’s claims over the nature of the $XRP coin. Later, in 2024, the SEC lawyers filed an objection against the court ruling to prove that the XRP coin was an unregistered security token.
As we know, the leadership of the SEC body has been changed, as the former SEC chairman Gary Gensler resigned in January 2025 & after that, US President Trump appointed pro-Crypto Mark Uyeda as the acting chairman.
SEC’s ProCrypto Stance & Speculations Around Crypto Products
The acting chairman of the SEC body has been playing his role perfectly for the crypto space, as expected. He established a Cryptocurrency group to create a set of rules & laws for digital assets.
Because of the change in SEC’s stance regarding cryptocurrencies, recently Bloomberg ETF expert Eric Balchunas predicted that the SEC body may not postpone decision for several months regarding new crypto spot ETF applications.
Read also: Vitalik Buterin’s Portfolio: Less Focussed on BTC, $ETH?
