Grayscale’s XRP ETF Application Accepted by SEC – Potential for Altcoin to Hit $3?
The U.S Securities and Exchange Commission (SEC) has officially recognized Grayscale’s submission of the XRP ETF 19b-4, signifying a significant advancement for the digital asset. This development comes amidst an ongoing legal dispute between XRP and the regulatory body.
Grayscale’s proposal aims to convert its XRP Trust, currently holding assets worth $12.8 million under management, into a Spot ETF. Other companies such as Canary Fund, 21Shares, WisdomTree, and Bitwise, who have filed similar requests, are also expected to receive comparable approvals.
In order for the ETF products to commence trading, the SEC must also endorse the S-1 form, which is the registration statement. As per the standard operating procedure, the regulator could take up to 240 days to either approve or reject the entry of these products into the market.
Implications on the Ripple Lawsuit
The acceptance of the 19b-4 filing has generated varied responses from the cryptocurrency community. Nate Geraci, from ETF Store, described the development as a significant message, highlighting the SEC’s decision to acknowledge the ETF filing despite their legal battle with Ripple, indicating a shift in their stance.
“The fact that the SEC has accepted the XRP ETF filing despite the ongoing litigation with Ripple sends a strong message. This move signifies a change in the regulator’s approach,” Geraci commented.
FOX Business journalist Eleanor Terrett underlined that while the SEC’s acknowledgment showcases a more receptive attitude, it doesn’t guarantee instant approval. The current SEC seems to be more open-minded compared to its predecessor, suggesting a positive shift in regulatory dynamics.
In a significant turn of events, certain ETF applicants withdrew their proposals in the past due to the previous administration’s reluctance to engage. The revised approach by the SEC points towards a more proactive and inclusive regulatory environment.
The approval odds for an XRP ETF in 2025 on Polymarket have surged to 80% over the last month, indicating growing optimism within the community.
On the price front, XRP witnessed a 15% surge in just a span of three days recently, currently sitting at $2.7, approximately 25% below its previous peak of $3.4. Analysts like Ali Martinez are optimistic about XRP’s potential to reclaim the $3 mark in the near future, viewing it as a viable middle-range target within the ascending range set since December.