- Bloomberg’s James Seyffart predicts an XRP ETF approval in 2025, but Litecoin may come first.
- Grayscale applies to turn its XRP trust into an ETF as the industry waits for favorable regulations.
- The SEC’s stance on Ripple’s native token as a security remains a major roadblock to approval.
Grayscale, a renowned manager of cryptocurrencies, filed a formally with the U.S. Security and Exchange Commission (SEC) for an XRP exchange traded fund (ETF). It is in a follow-up move, with several companies wanting to make a gamble with the Trump administration’s soft stance towards cryptocurrencies.
Grayscale’s XRP trust, with assets worth about $16.1 million, seeks to make investors have access to the cryptocurrency in a less complex and less expensive form, bypassing direct purchase of the coin. Dave LaValle, Grayscale’s Global Head of ETFs, emphasized the company’s dedication to innovation, citing its objective to expand access to investors for digital assets and the DeFi environment.
The application for converting the Ripple’s cryptocurrency trust into an ETF is Grayscale’s expansion into its presence in growing ETFs in cryptocurrencies. It is part of a long sequence of companies in an attempt to launch ETFs for Solana, Dogecoin, and Litecoin, amongst many more.
Since Donald Trump’s presidency, hope for a brighter future for cryptocurrencies’ regulating environment grew larger. With the future appointment of a renowned supporter of cryptocurrencies, including Paul Atkins, to serve as a new head of the SEC, a new era for cryptocurrencies could soon become a reality.
Many within the community have a perception that Atkins will take a less stringent approach towards regulating cryptocurrencies in contrast with current head Gary Gensler. Nevertheless, even with such a transition, not all impediments have been cleared for XRP.
XRP ETF Faces Legal Hurdles as Litecoin Gains Favor
While some speculate about approval for an XRP ETF in 2025, Bloomberg analyst James Seyffart advises that impediments stand in its way. The SEC continues to view XRP as a security, a characterization that impedes an ETF approval. In Seyffart’s view, a Litecoin ETF could receive approval first without having branded Litecoin as a security, and hence, not a contentious one.
Despite these obstacles, Ripple’s head, Monica Long, is positive about XRP’s future. In a statement recently, she hinted at ETF approval “very soon,” praising it as a future big win in an increasingly burgeoning ETF for cryptocurrencies.
Several other fund companies have pursued a similar route and filed for XRP ETFs, including Bitwise Wisdom Tree and, most recently, Canary. All such filings have strong institutional demand for XRP, but approval will rely on overcoming ongoing court battles.
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