XRP News Today: SEC Likely to Approve Litecoin and XRP Spot ETFs by 2025

The U.S. Securities and Exchange Commission (SEC) is anticipated to approve spot exchange-traded funds (ETFs) for Litecoin (LTC) and XRP, according to analysts. This move is part of a broader trend of increasing regulatory acceptance of cryptocurrency-based financial products. The approval of these ETFs would be a significant milestone, as it would be the first time the SEC has green-lit spot ETFs for altcoins, following the approval of Bitcoin and Ethereum spot ETFs earlier this year.

Analysts predict a 95% chance that the SEC will approve LTC and XRP spot ETFs by the end of 2025. This optimism is based on several factors, including the SEC's recent approval of a multi-asset ETF that includes XRP, Solana (SOL), and Cardano (ADA) among its holdings. The approval of this multi-asset ETF, which is expected to be converted from Grayscale Investments’ Digital Large Cap Fund (GDLC), would pave the way for individual spot ETFs for these altcoins.

The SEC's decision to approve the multi-asset ETF is seen as a low-risk step into the world of altcoin ETFs. The fund holds a relatively small percentage of its assets in XRP, SOL, and ADA, which reduces the regulatory risk associated with these less-established cryptocurrencies. This incremental approach aligns with the SEC's playbook, which has seen the approval of spot Bitcoin ETFs in January 2024 and spot Ether ETFs seven months later.

The approval of the multi-asset ETF would also provide the SEC with valuable data on trading, flows, and creation-redemption activity. This data could be used to underwrite subsequent decisions on standalone ETFs for XRP, SOL, and ADA later in 2025. The approval of these ETFs would not only boost market confidence in the future of cryptocurrencies but also provide investors with regulated exposure to these digital assets.

The SEC's engagement with the industry has intensified in recent months, with Grayscale filing an amended Form S-3 for GDLC on June 26. This move is seen as evidence that the SEC is actively engaged in the review process and is seeking to ensure that the ETF meets all regulatory requirements. The registration statement reiterates that the listing of the shares cannot proceed without Commission sign-off, but it also supplies updated disclosure on custody, creation-unit size, and index methodology—changes that typically occur only after iterative feedback from SEC staff.

Approval of LTC and XRP spot ETFs would be a significant development for the cryptocurrency industry, as it would provide investors with a regulated and accessible way to gain exposure to these digital assets. The approval would also signal the SEC's growing acceptance of cryptocurrencies as a legitimate asset class, paving the way for further innovation and investment in the space.

Institutional capital inflows are expected in both Litecoin and XRP, possibly replicating the financial dynamics observed with BTC and ETH. Analysts emphasize the regulatory interactions as a positive underpinning for these anticipated ETF approvals. The approval is expected to cement market confidence in Litecoin and XRP, mirroring previous ETF-related rallies.

Market reactions have been generally optimistic, with leading cryptocurrency forums and channels focused on the potential large-scale capital redirection towards LTC and XRP. The anticipated approval follows a similar path to Bitcoin and Ethereum spot ETFs, which have been in play since early 2025. The approval of spot ETFs for Bitcoin and Ethereum in 2024 led to notable price surges and increased market confidence, setting the stage for broader ETF acceptance in the cryptocurrency market.