XRP ETF dreams on hold thanks to the SEC, Litecoin and DOGE step up

Bloomberg ETF analyst James Seyffart believes Litecoin has the highest probability of securing approval for a spot ETF, among all altcoins.

Seyffart shared this perspective in a recent discussion on the Thinking Crypto podcast, giving it an impressive 90% chance.

Why Litecoin Leads the Pack

According to Seyffart, Litecoin stands out with an impressive 90% chance of getting approved.

The key reason is Litecoin’s strong position with the SEC, particularly with the Division of Trading and Markets and the Division of Corporate Finance. This makes Litecoin a frontrunner in the race for ETF approval among altcoins.

Other Altcoins with Strong Prospects

Seyffart also highlighted several other altcoins that show promise in securing ETF approval. Dogecoin has a relatively high chance of approval as well due to its clear status as a non-security.

HBAR, although not as certain as Litecoin or Dogecoin, is still considered to have a solid chance, with movements being seen from the SEC’s Corporate Finance division.

What About More Controversial Altcoins?

Seyffart also mentioned Solana, XRP, Cardano, and Polkadot. Despite previous legal uncertainties surrounding some of these assets, Seyffart expressed confidence that the SEC would not classify these coins as securities and would likely allow them to be listed in a commodities ETF wrapper.

This suggests a potentially significant shift. These altcoins could soon be in line for approval, should the SEC continue its evolving stance on crypto assets. Notably, the SEC has acknowledged the ETF filings of these altcoins. Under the previous SEC administration, the agency declined to acknowledge the altcoin ETF filings.

XRP’s Unique Hurdle

Meanwhile, XRP remains an outlier due to Ripple’s ongoing legal battle with the SEC. Seyffart noted that the direct lawsuit between Ripple and the SEC complicates the approval process for an XRP ETF.

Unlike other altcoins, XRP’s ETF approval hinges on the resolution of its legal issues, which have been ongoing for years. Despite this, Seyffart remains optimistic that XRP will eventually secure an ETF approval once the lawsuit is resolved.

Notably, the lawsuit between Ripple and the SEC is in its final days, as both parties are in talks to enter a settlement.

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