Increasing excitement surrounds the potential approval of an exchange-traded fund (ETF) for XRP in the United States. FOX Business journalist Eleanor Terrett indicated that the SEC is set to review Grayscale’s application for an XRP ETF on February 13, 2025. If successful, XRP would join Bitcoin and Ethereum in the realm of spot ETFs. However, the active lawsuit between Ripple and the SEC may complicate this scenario.
What Could SEC’s Review Reveal?
Terrett emphasized that the SEC generally assesses 19b-4 applications within a 15-day window. Should the XRP ETF application gain approval during this timeframe, it would provide crucial insights into the current SEC’s stance on XRP. The previous classification of XRP as an unregistered security by former SEC Chair Gary Gensler has shifted after a federal court ruled in favor of XRP’s status.
What Challenges Might the XRP ETF Face?
Bloomberg’s James Seyffart and Eric Balchunas estimate a 65% chance for the XRP ETF’s approval this year, which compares favorably against other cryptocurrencies like Litecoin (90% approval likelihood), Dogecoin (75%), and Solana (70%). The resolution of the ongoing case between Ripple and the SEC is deemed critical for quickening the ETF’s approval process. Pro-XRP lawyer Jeremy Hogan has stated that a resolution may be imminent.
Market insights suggest that the SEC’s decision-making could span 8 to 12 months. Furthermore, Nasdaq has also submitted its application for an XRP ETF. An approval would allow investors to gain exposure to XRP without direct ownership, likely boosting the altcoin’s demand and price.
– XRP ETF approval could lead to significant market shifts.
– The ongoing lawsuit’s resolution is pivotal for approval timelines.
– Other cryptocurrencies are also vying for ETF status, indicating a competitive landscape.
The potential approval of the XRP ETF by the SEC could alter the landscape for cryptocurrency investments significantly. With increasing scrutiny and interest from institutional platforms, the outcome may lead to broader acceptance and integration of cryptocurrencies into traditional financial markets.
