Expectations for approval of the XRP Spot ETF by the SEC have markedly deteriorated. Investors are monitoring legislative changes and predicting further steps from regulators.
Decline in XRP Spot ETF Approval Probability
According to prediction platform Polymarket, the probability of approval for an XRP Spot ETF had dropped to 7% by the end of July, down from 50% in April and 32% at the beginning of July.
SEC's Work on Guidelines
The SEC is currently developing guidelines to streamline the approval process for crypto ETFs. According to Reuters, while the SEC published a 12-page initial document outlining disclosure standards for ETFs, approval timelines remain uncertain.
Future of Crypto ETFs and Market Impact
The market is now eagerly awaiting the SEC's second directive, which is expected to introduce new listing standards. Ongoing negotiations within the SEC may lead to this document's completion in the fall. Despite initial hopes for a Solana-based ETF, the SEC's current approach has weakened these expectations.
The overall sentiment in the XRP market now hinges on the SEC's actions and the uncertain timelines for crypto ETF approvals.
