Bloomberg Analyst: "XRP ETF Is Coming But This Altcoin's ETF Will Be Approved Sooner!"

Grayscale Investments applied two days ago to convert XRP Trust, a fund traded on the exchange, into an ETF (.

However, Bloomberg analyst James Seyffart suggests that Litecoin could be approved for an ETF before XRP.

If approved, the ETF will be listed on the New York Stock Exchange, providing investors with the opportunity to be exposed to XRP without the complexity of direct asset ownership. Currently, the Grayscale XRP Trust has approximately $16.1 million in assets.

Grayscale's Global CEO Dave LaValle said, "As an innovative and future-oriented asset manager, Grayscale is committed to identifying opportunities to offer products that meet customer demand and expand investors' access to digital assets and the broader DeFi ecosystem."

Grayscale's application came amidst the increase in crypto currency ETF applications following the election of Donald Trump, whose administration is expected to take a more positive stance in the sector. Other companies are also hoping to benefit from the anticipated regulatory change by recently applying for Solana, Dogecoin, and Litecoin ETFs.

Crypto proponents are closely watching the appointment of Paul Atkins, Trump's pick to chair the SEC. Atkins, a known supporter of digital assets, is expected to take a softer approach to securities enforcement compared to former SEC Chairman Gary Gensler.

Despite the excitement stirred by the XRP ETF, Seyffart from Bloomberg warns that regulatory barriers continue. Ongoing SEC lawsuits claim that XRP is a security, which could delay ETF approval.

"There's a lot more work to be done on this, which doesn't have to happen with something like Litecoin," Seyffart said, adding, "The SEC has never named Litecoin as a security, so I wouldn't be surprised if you see Litecoin come first."

If confirmed as SEC chairman, Atkins could drop or settle lawsuits against XRP and potentially pave the way for an ETF. However, the timeline for such a move remains unclear.

Despite regulatory concerns, Ripple President Monica Long continues to be confident in XRP's ETF prospects. In a recent Bloomberg interview, he stated that an XRP ETF is "next" and could be approved "very soon."