XRP ETF May Follow Litecoin Fund Launch, Analyst Suggests

Exchange-traded funds (ETFs) based on XRP might emerge in the United States by 2025, though the process is complicated by the ongoing lawsuit involving the SEC over whether Ripple’s token is a security. This perspective was shared by Bloomberg analyst James Seyffart.

Bloomberg analyst James Seyffart said that the XRP ETF is likely to be approved in 2025. However, the US SEC is currently involved in a lawsuit involving “XRP is a security.” So the Litecoin ETF may appear first because LTC has not been identified as a security.…

— Wu Blockchain (@WuBlockchain) February 1, 2025

A Litecoin-based exchange product might debut earlier, as the “digital silver” has not yet been classified as a security, the expert noted.

What Else Is a Priority?

Among active ETF launch applications, those based on XRP and Solana are leading by a significant margin.

“Currently, 35 applications for spot ETF launches have been submitted. They range from converting closed trusts into spot funds to more ambitious initiatives, including creating ETFs based on newly issued meme coins,” Kaiko analysts explained.

On January 31, the firm 21Shares filed an application to launch a spot exchange-traded fund based on Polkadot. The product is expected to trade on the Cboe BZX exchange, with Coinbase Custody serving as custodian.

Earlier, Tuttle Capital Management submitted a proposal to the SEC to register ten 2x leveraged crypto-ETFs, including those based on meme coins TRUMP and MELANIA.

Other products are based on XRP, Solana, Litecoin, Bonk, BNP, Cardano, Chainlink, and Polkadot.