SEC’s XRP ETF Signal: Why Crypto Investors Are Getting Excited
The Securities and Exchange Commission has officially acknowledged an XRP ETF filing from NYSE and Grayscale, triggering a review period that could bring this controversial crypto asset to mainstream investment platforms. This unexpected regulatory development comes despite the SEC’s ongoing legal battle with Ripple.
In a move that caught many in the crypto community by surprise, the SEC acknowledged a 19b-4 filing submitted by the New York Stock Exchange and asset manager Grayscale for an XRP-based exchange-traded fund. This acknowledgment initiates a 240-day review period during which the Commission will evaluate the proposal.
What makes this development particularly noteworthy is the timing. The SEC has been locked in a legal dispute with Ripple, XRP’s issuer, since December 2020, arguing that XRP sales constituted unregistered securities offerings. Though Ripple secured a partial victory in August 2023 when a federal judge ruled that XRP sold on secondary markets does not qualify as a security, the SEC appealed this decision in January 2025, just days before the presidential transition.
“They could have easily rejected this filing,” noted Nate Geraci, President of the ETF Store, in a post on X. “Enormous message [in my opinion.]”
The SEC’s willingness to review an XRP ETF application while simultaneously fighting Ripple in court has sparked optimism among crypto enthusiasts. Bloomberg ETF analysts James Seyffart and Eric Balchunas recently assigned a 65% probability to an XRP ETF approval by the end of 2025.
For context, these same analysts predict an even higher likelihood of approval for other crypto ETFs: Litecoin (90%), Dogecoin (75%), and Solana (65%). All pending applications for these crypto ETFs are scheduled for decisions in October.
This development follows the successful launches of Bitcoin and Ethereum ETFs earlier, which have attracted billions in investor capital. An XRP ETF would further expand regulated crypto investment options for traditional investors who prefer the familiarity and protections of established financial products.
The SEC’s acknowledgment doesn’t guarantee approval, but it does indicate the regulator is at least willing to formally evaluate the proposal rather than immediately rejecting it – a subtle but significant shift that may signal evolving regulatory attitudes toward digital assets.
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