The potential approval of an exchange-traded fund (ETF) for XRP in the United States is drawing investor attention. FOX Business journalist Eleanor Terrett reported that the SEC is set to review Grayscale’s application for an XRP ETF on February 13, 2025. This event, if it occurs, may have significant implications for the crypto market.
What Could SEC’s Review Reveal?
Terrett emphasizes that the SEC generally assesses 19b-4 applications within a 15-day window. Should the XRP ETF application gain approval during this timeframe, it would provide crucial insights into the current SEC’s stance on XRP. The previous classification of XRP as an unregistered security by former SEC Chair Gary Gensler has shifted after a federal court ruled in favor of XRP’s status.
What Challenges Might the XRP ETF Face?
Bloomberg’s James Seyffart and Eric Balchunas estimate a 65% chance for the XRP ETF’s approval this year, which compares favorably against other cryptocurrencies like Litecoin (90% approval likelihood), Dogecoin (75%), and Solana (70%). The resolution of the ongoing case between Ripple and the SEC is deemed critical for quickening the ETF’s approval process. Pro-XRP lawyer Jeremy Hogan has stated that a resolution may be imminent.
Potential Market Shifts and Implications
Market insights suggest that SEC’s decision-making could span 8 to 12 months. Furthermore, Nasdaq has also submitted its application for an XRP ETF. An approval would allow investors to gain exposure to XRP without direct ownership, likely boosting the altcoin’s demand and price.
The potential approval of the XRP ETF by the SEC could profoundly alter the landscape for cryptocurrency investments. With increasing scrutiny and interest from institutional platforms, the outcome may lead to broader acceptance and integration of cryptocurrencies into traditional financial markets.
