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The departure of former SEC Chairman Gary Gensler has reignited expectations for spot ETFs in the cryptocurrency market. Applications for ETFs related to altcoins like XRP, Solana 
$173, and Litecoin have drawn regulatory scrutiny. Experts indicate that Litecoin may have the strongest potential to emerge victorious in this race. Nate Geraci, President of The ETF Store, highlighted Litecoin’s similarities to Bitcoin 
$108,693 and its lack of legal entanglements as significant advantages. Clarity from the SEC on classifying cryptocurrencies as either “securities” or “commodities” remains critically important.
Factors Increasing Litecoin’s ETF Approval Chances
Litecoin’s similarity to Bitcoin helps it establish a reliable profile with regulators. Geraci noted that Litecoin could be considered in the same category as Bitcoin regarding “commodity” status. Furthermore, Litecoin’s history of avoiding legal disputes with the SEC could expedite the approval process.
Regulatory requirements like “surveillance agreements” also work in Litecoin’s favor for spot ETF approval. Geraci mentioned that these agreements, when made with large and regulated markets, reduce the risk of manipulation. The absence of a futures market requirement, as seen with spot Bitcoin and Ethereum 
$2,714 ETFs, is another detail that opens doors for Litecoin.
Legal Hurdles and Uncertainties for XRP
In contrast, the situation for XRP is more complex compared to Litecoin. Ongoing lawsuits between the SEC and Ripple 
$2 Labs deepen the uncertainty about XRP’s status as a security. Geraci commented that such legal issues could delay ETF applications, although the process is not entirely closed. He emphasized that if the SEC clearly classifies XRP, ETF approval could be attainable.
The priorities of new SEC Chairman Paul Atkins remain unclear. The regulator’s approach to the cryptocurrency market will directly impact the timing of ETF applications. Despite challenges, Geraci noted that assets like XRP and Solana could still have long-term prospects for ETFs, although Litecoin appears to be the less risky option in the short term.
