Grayscale’s XRP ETF Poised for SEC Approval This Week

The U.S. Securities and Exchange Commission (SEC) may acknowledge Grayscale and NYSE Arca’s spot XRP exchange-traded fund (ETF) filing as early as Thursday, according to FOX Business journalist Eleanor Terrett. 

This development is highly anticipated, as it could offer crucial insight into the SEC’s evolving stance on XRP—a cryptocurrency at the heart of a prolonged legal battle between Ripple and the regulatory agency.

XRP ETF – The Road to Approval

Last month, NYSE Arca filed a 19b-4 form on behalf of Grayscale, seeking a rule change to list and trade shares of the XRP ETF. The SEC typically has about 15 days to accept such applications for review. 

This filing follows Grayscale’s launch of its XRP Trust product, which debuted amid Ripple’s ongoing legal skirmish with the SEC.

A landmark court ruling in August clarified that XRP tokens sold on exchanges to retail investors do not constitute securities, though institutional sales do. 

This partial victory for Ripple resulted in a $125 million fine, but the SEC has since appealed, extending the case to the Second Circuit Court of Appeals. 

Ripple has requested an April 16, 2025, deadline for its response brief, prolonging regulatory uncertainty for any XRP-related ETFs.

Also read: The SEC, Japanese Banks, and XRP’s Future: A Potential Breakout or Continued Limbo?

Broader ETF Market and Legal Hurdles

Grayscale is not alone in seeking to launch an XRP ETF. Asset managers such as WisdomTree, Bitwise, 21Shares, and Canary Capital have also submitted applications, with the CBOE Exchange filing multiple 19b-4 forms for their respective funds last week. However, ongoing litigation may pose a significant hurdle for any XRP ETF approval.

Meanwhile, analysts foresee greater regulatory clarity for other crypto ETFs. Bloomberg ETF experts Eric Balchunas and James Seyffart predict that Litecoin will lead the next wave of approvals, well ahead of XRP, Solana, and Dogecoin. 

They estimate a 90% likelihood of a Litecoin ETF receiving approval this year, given its classification as a commodity by the Commodity Futures Trading Commission (CFTC), which places it outside the SEC’s jurisdiction.

Also read: XRP in Japan: How Will Japanese Banks’ Adoption Impact XRP Prices?

Potential Impact on XRP and the Crypto Market

If approved, Grayscale’s XRP ETF could be a milestone for Ripple and the broader cryptocurrency market, offering institutional investors a regulated entry point into XRP. 

ETFs serve as a bridge between traditional finance and digital assets, providing exposure without direct ownership. This could drive increased liquidity, price stability, and mainstream adoption.

A favorable SEC decision might also indicate a shift toward a more accommodative regulatory stance on crypto-based financial products. Following Bitcoin and Ethereum ETF approvals, interest in altcoin ETFs continues to grow. 

However, XRP’s regulatory history adds complexity, and lingering legal uncertainties may still influence the SEC’s final decision.

Historically, ETF approvals have spurred bullish momentum in associated crypto assets. Should Grayscale’s XRP ETF receive the green light, heightened institutional interest could fuel a price surge. 

However, cryptocurrency markets remain volatile, and long-term investor sentiment will be a key determinant of sustained value appreciation.

Also read: XRP Price Prediction for 2030 - What is the XRP Price Prediction in the Next 5 Years?

The Future of Crypto ETF

Beyond XRP, the success of regulated crypto ETFs could set the stage for further institutional adoption of digital assets. 

Ripple has been actively expanding XRP’s role in cross-border payments and banking services, and a regulated investment vehicle could enhance credibility among financial institutions.

With the crypto ETF market expanding, investors and industry stakeholders will closely monitor the SEC’s decision. 

Whether XRP secures regulatory approval or faces further delays, its outcome will likely shape the trajectory of crypto-related financial products in the years to come.

Read more about XRP: 

How to buy XRP (XRP)

XRP (XRP) Price Today

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XRP to USD: Convert Ripple to US Dollar

FAQ

1. What is Grayscale’s XRP ETF?

Grayscale’s XRP ETF is a proposed exchange-traded fund that aims to offer institutional investors regulated exposure to XRP without direct ownership of the cryptocurrency.

2. When is the SEC expected to acknowledge Grayscale’s XRP ETF filing?

The SEC may acknowledge Grayscale’s spot XRP ETF application as early as this week, potentially marking a significant step toward regulatory approval.

3. How does the ongoing Ripple vs. SEC lawsuit affect XRP ETF approval?

The legal battle between Ripple and the SEC introduces regulatory uncertainty, which could impact the ETF’s approval timeline. However, a court ruling in 2023 determined that XRP sales to retail investors do not classify as securities.

4. What impact could an XRP ETF approval have on the market?

If approved, the XRP ETF could increase institutional investment, improve liquidity, and drive mainstream adoption, potentially boosting XRP’s price and market stability.

5. Are other asset managers also seeking XRP ETFs?

Yes, firms like WisdomTree, Bitwise, 21Shares, and Canary Capital have also filed applications for XRP ETFs, signaling growing institutional interest in the asset.