Grayscale XRP ETF Filing Advances to SEC Review

Grayscale’s proposed XRP exchange-traded fund (ETF) has officially entered the U.S. Securities and Exchange Commission’s (SEC) Federal Register, moving it one step closer to approval.

The Thursday publication has triggered a 21-day public comment period, during which the SEC will evaluate the proposal. The regulator is expected to approve, deny, or extend the review process by October 18.

If approved, the Grayscale XRP ETF would provide institutional investors with a regulated avenue for XRP exposure, further legitimizing digital assets as an investment class.

XRP ETF Could Set a Transformative Precedent

Saravanan Pandian, CEO and founder of KoinBX, emphasized the potential significance of an XRP ETF approval.

“In the long run, approvals of crypto-based ETFs, like Grayscale’s XRP ETF, could significantly impact the crypto community by legitimizing digital assets as a recognized investment class,” he stated.

The XRP market has been energized by reports suggesting Bank of America may utilize the token for internal transactions, as well as growing speculation on the SEC’s legal stance regarding Ripple.

Despite a 1% decline in the last 24 hours to $2.66, XRP is up over 381% in the past 12 months, per CoinGecko data.

Ripple’s Legal Battle Holds the Key

The SEC’s ongoing lawsuit against Ripple, filed in December 2020, accused the company of raising over $1.3 billion through unregistered XRP sales, classifying XRP as a security under the Howey Test.

Arthur Azizov, CEO of B2BINPAY, believes an XRP ETF approval in 2024 is highly probable.

“How soon will depend on how quickly the legal disputes with the SEC are resolved,” he told Decrypt.
“Since an ETF would provide institutional investors with easier access to XRP, it would significantly increase capital inflows into the asset, driving its price higher.”

Shift in SEC Stance Fuels Optimism

With Acting SEC Chair Mark Uyeda leading the commission, the agency appears to be shifting its crypto regulatory approach.

The SEC has recently acknowledged multiple XRP ETF filings, including proposals from Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares.

Meanwhile, altcoin ETF applications continue to flood the SEC’s pipeline, with Solana (SOL) ETF proposals from VanEck, 21Shares, Bitwise, and Canary Capital being added to the Federal Register on February 18.

“These approvals signal increasing institutional and governmental recognition, which boosts credibility and fosters trust in the broader financial ecosystem,” Pandian added.

The Road Ahead for Grayscale’s XRP ETF

While the public comment period is underway, the fate of Grayscale’s XRP ETF depends on its ability to comply with SEC investor protection standards.

With multiple crypto ETF applications gaining traction, the XRP community remains optimistic that institutional adoption is on the horizon.