The filing for Grayscale’s proposed XRP exchange-traded fund has officially hit the U.S. Securities and Exchange Commission’s Federal Register, bringing it one step closer to becoming a reality.
The publication, which entered on Thursday, has triggered a 21-day comment period, with the regulator expected to approve, deny, or further review Grayscale’s filing by October 18.
If approved, the ETF would provide a regulated vehicle for exposure to XRP, one of the most talked-about cryptos in the market, amid optimism surrounding its legal and regulatory status.
First-Ever Spot XRP ETF Gets Green Light in Brazil
The first spot exchange-traded fund based on XRP’s ongoing price will soon begin trading—just not in the U.S. The Hashdex Nasdaq XRP Index Fund has launched in a pre-operational phase and will debut on Brazil’s B3 exchange after the country’s financial investments regulator greenlit the ETF on Wednesday. Crypto asset manager Hashdex has not yet specified a start date. The fund’s approval comes as issuers worldwide aim to address surging demand for crypto-focused investments, amid a more favora...
Speaking to Decrypt, Saravanan Pandian, CEO and founder of crypto exchange KoinBX, said while the review process will involve assessing market risks, investor protections, and legal classifications, a potential approval could set a “transformative precedent for XRP and the broader crypto ecosystem.”
“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,” Pandian added.
The crypto’s recent resurgence has been fueled by reports such as the potential use of the token by Bank of America for internal transactions, alongside speculation about the SEC’s stance on Ripple’s long-standing legal battle.
While XRP is down 1% on the day to $2.66, it’s up by more than 381% over the past 12 months, CoinGecko data shows.
The SEC’s lawsuit, filed in December 2020, accused Ripple of raising over $1.3 billion through unregistered XRP sales, classifying the token as a security under the Howey Test.
SEC Acknowledges Grayscale’s XRP ETF Proposal, Setting Stage for Federal Review
The SEC has acknowledged and published details of NYSE Arca's proposal to list shares of the Grayscale XRP Trust on Thursday, revealing an extensive framework designed to address regulatory concerns around trading. While the regulator has acknowledged the 19b-4 filing, it’s only one step along what could stretch to a 240-day review window after an initial 45 days, which only begins once the proposal is published in the Federal Register. This acknowledgment comes as heightened interest in crypto...
“There is a high likelihood that an XRP ETF will launch this year,” Arthur Azizov, CEO of crypto payment solution B2BINPAY, told Decrypt. “How soon will depend on how quickly the legal disputes with the SEC are resolved.”
He added: “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.”
It comes as several issuers are vying to push through crypto ETFs now that Acting Chair Mark Uyeda is in charge, with crypto participants eyeing a change in the regulator’s stance on the industry.
The agency has already acknowledged multiple XRP ETF filings in the past few weeks from Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares,
SEC Acknowledges CoinShares XRP and Litecoin ETF Filings
Wall Street’s top regulator is mulling over applications from European asset manager CoinShares to approve the world’s first U.S.-based spot XRP and Litecoin exchange-traded funds, a Wednesday filing shows. The funds would track the performance of XRP, the world’s third-largest cryptocurrency by market cap and Litecoin, which ranks 15th in value. The assets are among the oldest altcoins to enter the market following Bitcoin’s 2009 start. The SEC said in the filing that comments should be submi...
Grayscale’s proposal joins others in a list of altcoin ETFs published in the Federal Register as Solana (SOL) ETF filings from asset managers VanEck, 21Shares, Bitwise, and Canary Capital were 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 said.
In any case, the path to approval for Grayscale’s ETF depends on public feedback and its compliance with SEC investor protection standards.
Edited by Sebastian Sinclair
