Grayscale continues to expand its exchange-traded fund offerings, pushing forward with an XRP ETF filing. The SEC has initiated the review process wherein public commentary and the ongoing Ripple case play crucial roles.
XRP ETF Filing Under Review
Grayscale has strategically moved to broaden its ETF offerings with an application for an XRP ETF, now recorded in the Federal Register. This marks a key procedural step, launching a 240-day period for the SEC to approve or reject the proposal, beginning February 14, and including a 21-day public commentary period.
Court Involvement: The Ripple Case
Despite progress, the XRP ETF application faces regulatory challenges. The SEC’s litigation against Ripple, arguing XRP's classification as a security, affects the ETF’s prospects. While Ripple has achieved partial court victories, uncertainty surrounds the SEC’s approach to the ETF. The SEC has shown greater caution toward altcoin ETFs, citing market manipulation concerns.
XRP Price Prospects Upon Approval
Currently, XRP trades between $2.4 and $2.8, despite a 1% dip over the last 24 hours, indicating neutral signals in market dynamics. Approval of the XRP ETF could entice institutional investors, potentially driving XRP to its previous all-time high of $3.84.
Grayscale's XRP ETF approval signifies a potential milestone for investors and the broader cryptocurrency market, with regulatory hurdles and Ripple’s ongoing litigation posing significant challenges.
