SEC’s Legal Battle with XRP Could Delay ETF Approval, Bloomberg Analyst Warns

As January ends, the excitement around XRP and its potential ETF is building. Grayscale has officially filed for an XRP spot ETF on the NYSE, and this has investors buzzing. Grayscale has been a key player in pushing forward Bitcoin and Ethereum spot ETFs, which makes their move toward XRP important.

This filing could pave the way for more crypto ETFs. Other companies, such as Canary Capital and Bitwise, have also applied for XRP spot ETFs. There’s even talk about BlackRock potentially submitting their own ETF application for XRP, and Grayscale has also filed for a Solana spot ETF. Meanwhile, companies like 21Shares, Bitwise, and Frank Templeton are considering their own applications for various crypto ETFs, including Dogecoin and Litecoin.

The SEC has already acknowledged Litecoin’s ETF application, and while Bitcoin and Ethereum initially launched as Futures ETFs before becoming spot ETFs, Grayscale played a major role in that process. This growing momentum for crypto ETFs is undeniably bullish for the industry, particularly for coins like XRP that might eventually see ETF approval.

However, Bloomberg analyst James Seyffart has issued a warning, suggesting that while XRP ETFs might be approved in 2025, it’s likely that ETFs for other cryptocurrencies, such as Litecoin, will be prioritized. He said that the ongoing SEC lawsuit regarding XRP, which argues that the cryptocurrency is a security, remains a barrier to its ETF approval.

“There’s some more work that needs to be done on that front that doesn’t need to happen with something like Litecoin. The SEC has never called Litecoin a security so, I wouldn’t be surprised if you see Litecoin come first,” he said.