The U.S. Securities and Exchange Commission (SEC) is reviewing two investment products based on XRP, seeking public input.
About the ETF Review
The SEC recently reached out for public opinion regarding Grayscale's Digital Large Cap (GDLC) Fund and Bitwise's 10 Crypto Index Fund, both of which include XRP. Feedback is due by August 22.
Status of Grayscale and Bitwise Funds
The GDLC Fund allocates nearly 6% of its assets to XRP along with BTC, ETH, SOL, and ADA. It initially received approval from the SEC's Trading and Markets Division on July 1, but that approval was later paused by the Commission. Bitwise's BITW fund, which holds around 5.9% in XRP, faced similar procedural issues after initial approval.
Analysts' Expectations
Analysts such as Bloomberg's James Seyffart expect clearer regulatory direction by the end of the month. His colleague Eric Balchunas suggests that the SEC could greenlight XRP-specific ETFs as soon as September or October.
The SEC's decision on XRP-based ETFs and related funds from Grayscale and Bitwise could significantly impact the cryptocurrency market. The call for public input highlights the importance of regulation in this sector.
