The XRP community is eagerly awaiting the deadline of the U.S. SEC appeal on January 15 and how it may impact the outlook for an XRP exchange-traded fund [ETF].
Back in November, the regulatory agency sought an extension to file its appeal in early January, leading some to speculate that the timing was linked to the U.S. elections.
With the incoming pro-crypto Trump administration and the appointment of Paul Atkins as SEC chair, there is uncertainty surrounding the agency’s stance on moving forward with the appeal.
Former SEC attorney Marc Fagel suggested that under the new administration, the appeal might be dismissed. He remarked,
“The appeal is ongoing for the moment, and the process typically lasts about a year. However, there is a chance that a new administration may opt to drop the appeal. While it’s not a common occurrence, it remains a possibility and could even be probable.”
Could an XRP ETF be on the Horizon sooner than Expected?
If the appeal is dismissed, it could potentially provide clarity on XRP’s classification as a security and enhance the likelihood of an ETF approval. Currently, the SEC has only given the green light to Bitcoin and Ethereum ETFs due to their non-securities status.
Despite this, there is optimism in the market that the new administration could approve multiple alternative coin ETFs by 2025.
Several companies, including Bitwise, Canary Capital, Wisdom Tree, and 21Shares, have already filed SEC applications for a U.S. spot XRP ETF.
At the time of writing, prediction platform Polymarket was indicating a 75% probability of an XRP ETF launching in 2025.
Market sentiments also point towards XRP holders gearing up for a potential surge, potentially fueled by an anticipated ETF approval.
According to CryptoQuant, South Korea-based Upbit, which holds the largest XRP reserves, has seen a decrease from 6.6 billion to 6.0 billion tokens. This indicates that users are choosing to retain their tokens despite the remarkable 465% spike in November.
Notably, this behavior contrasts with the 100% increase observed in July, which led to a surge in sell pressure for Upbit, raising its reserves from 1.6 billion to 6.7 billion tokens—a staggering 300% rise.
In essence, XRP investors appear to be awaiting the outcome of the ETF deliberation or the anticipated altcoin season in 2025. Should experts’ projections materialize and an ETF approval boost XRP value beyond $5, the patience might prove rewarding.