XRP ETF vs Litecoin ETF: Which One Will Be Approved First in 2025?

Bittime - 2025 is expected to be a pivotal year for several altcoins, including XRP and Litecoin (LTC), to gain ETF approval from the US SEC. 

However, Litecoin is considered to have a greater chance than XRP to be approved earlier. Here is an analysis of the approval of the XRP ETF vs. Litecoin ETF. Which one do you think will be approved first?

XRP ETF vs Litecoin ETF: Litecoin's Opportunity is Bigger

According to Eric Balchunas, an ETF analyst from Bloomberg, regarding the XRP ETF vs Litecoin ETF, Litecoin has an advantage because it has never been classified as a security by the SEC. 

This is an important point, considering that many other altcoins , including XRP, are caught in legal conflicts with the SEC over their status.

Litecoin, which was developed as a fork of the Bitcoin network, also has a strong track record as a digital commodity. 

The presence of a stable market and recognition as a commodity make Litecoin more potential as a candidate for a spot ETF.

Also Read:  XRP ETF Approval Potential Analysis in 2025 

ETF XRP vs ETF Litecoin: The Legal Status of XRP

On the other hand, regarding XRP ETF vs Litecoin ETF, XRP still faces major legal challenges. Since 2020, Ripple Labs, the company behind XRP, has been dealing with an SEC lawsuit alleging that XRP is a security. 

Although a 2023 court ruling declared XRP not a security in retail transactions, its status as a security in institutional transactions remains up for debate.

James Seyffart, another Bloomberg analyst, said that XRP ETF approval may not come until the new SEC administration in 2025 resolves these complex legal issues.

Also Read:  When Will the SEC vs Ripple (XRP) Case End? Here Are the Important Dates! 

XRP ETF vs Litecoin ETF: SEC's Role in ETF Approval

The SEC has been a major roadblock to the approval of many altcoin-based ETFs. For example, several recent  Solana ETF applications were rejected due to Solana’s status as a security.

However, this situation could change with the entry of Paul Atkins, who is known to be pro-crypto, as the next SEC Chairman.

However, Balchunas said that the change in leadership at the SEC does not necessarily mean that XRP ETF approval will happen immediately. The process of resolving legal issues and reassessing XRP's status will still take time.

Also Read:  Ripple Officially Launches RLUSD: Here's How It Impacts XRP 

XRP ETF vs Litecoin ETF: Demand for Litecoin ETF

While Litecoin has a bigger chance in an XRP ETF vs Litecoin ETF, the question that arises is whether there is enough demand from investors for a Litecoin ETF. 

Some analysts also question whether a Litecoin ETF could attract the same level of capital inflows as Bitcoin and Ethereum ETFs. 

So, while it could potentially be approved sooner, the success of a Litecoin ETF will depend largely on investor interest.

One thing is clear, 2025 will be an interesting year to watch the development of the XRP ETF vs Litecoin ETF.

Also Read:  Meme Coin XRP Ledger Strengthens: ARMY, BEAR, and MAG  

FAQ XRP

What is XRP and What is its Use?

XRP is a digital asset created by Ripple Labs and designed to facilitate cross-border payments. XRP’s blockchain technology enables transactions in just a few seconds with very low fees, making it ideal for international money transfers and micropayments.

What is the Difference Between XRP and Other Cryptocurrencies Like Bitcoin?

XRP supports cross-border payment systems with a focus on speed and cost efficiency, unlike Bitcoin which functions more as a store of value and investment tool. In addition, XRP uses a consensus mechanism that does not require mining, making it more energy efficient.

How to Buy XRP?

XRP can be purchased through various exchange platforms such as Bittime, by visiting the trade page on the official Bittime website. 

How to Buy Crypto on Bittime

Want to trade and buy Bitcoin and invest in crypto easily? Bittime is ready to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures that every transaction is safe and fast. 

Start by registering and verifying your identity, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check BTC to IDR , ETH to IDR , SOL to IDR and other crypto assets rates to find out today's crypto market trends in real-time on Bittime.   

Also, visit  Bittime Blog for interesting updates and educational information about the crypto world. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the crypto world.

Reference

Olumide Adesina, Markets Bet Litecoin and Hedera ETF Before XRP ETF, diakses pada 19 Desember 2024.

Gamza Khanzadaev,  Litecoin ETF Might Happen Before XRP ETF, Expert Says , accessed December 19, 2024.