Grayscale’s Proposed XRP ETF Moves Closer to Approval as SEC Publishes Filing
Grayscale Investments has taken a significant step toward launching its proposed exchange-traded fund (ETF) focused on XRP, one of the most prominent cryptocurrencies in the market. The filing for the ETF has officially been recorded in the U.S. Securities and Exchange Commission’s (SEC) Federal Register, a move that brings the initiative one step closer to realization.
Comment Period Initiates
The SEC’s publication of Grayscale’s filing occurred on Thursday, setting the stage for a 21-day comment period. During this timeframe, stakeholders and the public have the opportunity to provide feedback on the proposed ETF. The regulatory agency is expected to make a decision regarding the approval, denial, or further review of Grayscale’s application by October 18. ### Potential Impact on XRP and Crypto Market
Should the SEC approve Grayscale’s ETF, it would create a regulated platform for investors to gain exposure to XRP. This development comes amid growing optimism surrounding XRP’s legal and regulatory status, especially following indications that it may be used by institutions like Bank of America for internal transactions.
Saravanan Pandian, CEO and founder of crypto exchange KoinBX, commented on the implications of an ETF approval. He noted that the review process would involve scrutinizing market risks, investor protections, and the legal classification of XRP. Pandian stressed that a favorable ruling could set a "transformative precedent" not only for XRP but also for the broader cryptocurrency ecosystem. He added, “Approvals of crypto-based ETFs, like Grayscale’s XRP ETF, could significantly impact the crypto community, legitimizing digital assets as a recognized investment class.”
XRP Performance and Legal Background
Despite a recent dip of 1%, bringing XRP’s price to $2.66, the token has experienced a remarkable surge of over 381% in the last 12 months, according to data from CoinGecko. XRP’s positive trajectory has been linked to speculation about the SEC’s forthcoming decisions in Ripple’s ongoing legal battle. The SEC initially filed a lawsuit in December 2020, accusing Ripple of raising more than $1.3 billion through unregistered XRP sales, asserting that the token qualifies as a security under the Howey Test.
Arthur Azizov, CEO of crypto payment solution B2BINPAY, expressed optimism regarding the probability of an XRP ETF launching this year. He explained that the speed of the approval process would largely depend on how rapidly the ongoing legal disputes with the SEC are resolved. Azizov noted, “An ETF would provide institutional investors with easier access to XRP, significantly increasing capital inflows into the asset and driving its price higher.”
Broader ETF Landscape
The energy surrounding Grayscale’s proposed XRP ETF comes amidst a growing interest in crypto ETFs, especially under the new leadership of Acting Chair Mark Uyeda. Other significant players such as Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares have also submitted ETF filings related to XRP, which have been recognized by the SEC in recent weeks. Notably, proposals for altcoin ETFs, including those for Solana (SOL), were recently added to the Federal Register on February 18. Pandian highlighted the increasing institutional and governmental acknowledgment of these ETFs, which enhances credibility and fosters trust in the overall financial ecosystem. However, the ultimate decision on Grayscale’s ETF—itself contingent upon public feedback and compliance with SEC investor protection standards—will be closely watched by market participants.
Conclusion
As Grayscale’s filing for the proposed XRP ETF enters the public commentary phase, the cryptocurrency community prepares for potential shifts in regulatory acceptance. The outcome of this process could have significant implications not only for XRP but also for the future of cryptocurrency investments. Investors and industry watchers alike will be awaiting the SEC’s decision, which could either catalyze a new chapter for digital assets or prompt further deliberations within the evolving regulatory landscape.
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