Bloomberg Analyst Highlights What May Delay XRP ETF Approval
Bloomberg ETF analyst James Seyffart advises caution against being overly optimistic about a potential XRP ETF approval. Grayscale Files to Convert Its XRP Trust to an ETF Earlier this week, popular crypto asset manager Grayscale Investments joined the list of prospective issuers seeking to launch a spot exchange-traded fund (ETF) tied to XRP. Grayscale submitted an application with the U.S. SEC to convert its $16 million XRP Trust into a tradable ETF on the New York Stock Exchange. This aligns with a broader wave of crypto ETF applications following the Trump Administrations more favorable stance on digital assets. Several Issuers Vying to Launch XRP ETF It is worth mentioning that several prospective issuers have applied to launch an XRP ETF. Some of them include Bitwise, Canary Capital, 21Shares, WisdomTree, and ProShares. Given the growing interest in XRP among institutions, several proponents speculated that the coin could be the next in line for an ETF. In a Bloomberg interview this month, Ripple President Monica Long predicted that the U.S. SEC would approve an XRP ETF very soon, noting that the asset is next in line for approval. Bloomberg Analyst Highlights Only Factor That May Delay SEC's XRP ETF Approval Amid these positive projections, Seyffart advises caution against being too optimistic about the SECs approval of an XRP ETF. Although he believes the SEC might approve at least one XRP ETF this year, he emphasized that an ETF for Litecoin may likely come first. According to Seyffart, the key reason the SEC might approve an ETF for Litecoin before XRP is that the latter is embroiled in the commissions lawsuit against Ripple. The lawsuit, which began in 2020, alleged that XRP is a security, potentially barring it from imminent ETF approval, according to Seyffart. Seyffart speculated that a new SEC leadership, headed by Paul Atkins, may likely drop the Ripple lawsuit, paving the way for an ETF approval. However, he noted that the timeline for this move remains uncertain. On the contrary, he acknowledged that Litecoin has never been dragged into any legal tussle, labeling it a security, making it a straightforward candidate for an ETF.
Text source: The Crypto Basic
