Good news for XRP enthusiasts! Grayscale’s application to launch a brand-new exchange-traded fund (ETF) for XRP has officially landed on the U.S. Securities and Exchange Commission’s (SEC) Federal Register. This crucial step inches the possibility of an XRP ETF closer to reality.
This official listing, which happened this Thursday, kicks off a 21-day public comment period. Now, everyone’s waiting to see if the SEC will give the green light, reject, or dig deeper into Grayscale’s proposal by October 18.
If it gets approved, this ETF would become a regulated and accessible way for investors to get involved with XRP. XRP, as many know, is one of the most talked-about cryptocurrencies out there, especially with all the optimism surrounding its current legal and regulatory situation.
Speaking with Decrypt, Saravanan Pandian, the CEO and founder of crypto exchange KoinBX, shared his thoughts. He pointed out that the review process will be thorough, looking at market risks, investor safeguards, and how XRP is legally classified. However, he believes that if approved, this ETF could be a “transformative precedent” not just for XRP, but for the entire crypto world.
Pandian further explained, “Looking ahead, approvals for crypto ETFs like Grayscale’s XRP ETF could have a major impact on the crypto community. It could really legitimize digital assets, recognizing them as a mainstream investment option.”
What’s fueling the recent buzz around XRP? Well, reports are suggesting that even Bank of America might be considering using the token for internal transactions. Plus, there’s a lot of chatter about the SEC potentially softening their stance in the ongoing legal battle with Ripple.
Even though XRP is slightly down today by 1% to $2.66, the bigger picture shows a massive surge of over 381% in the last year alone, according to CoinGecko data.
Let’s not forget the SEC’s lawsuit from December 2020. They accused Ripple of raising a significant $1.3 billion through XRP sales that weren’t registered, arguing that XRP should be classified as a security under the Howey Test.
Arthur Azizov, CEO of crypto payment solution B2BINPAY, also spoke with Decrypt, stating, “There’s a pretty good chance we’ll see an XRP ETF launch this year.” He added, “The timeline really depends on how quickly these legal issues with the SEC get sorted out.”
Azizov further explained the potential impact: “An ETF would open the door for bigger, institutional investors to easily invest in XRP. This would likely mean a significant influx of capital into XRP, potentially driving its price upwards.”
Adding to the excitement, several companies are now pushing for crypto ETFs, especially with Acting Chair Mark Uyeda at the helm. Many in the crypto space are hoping this signals a shift in the regulator’s approach to the industry.
The SEC has already acknowledged a wave of XRP ETF filings in recent weeks from companies like Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares.
Grayscale’s XRP ETF proposal is joining a growing list of altcoin ETFs in the Federal Register. Just recently on February 18th, filings for a Solana (SOL) ETF from asset managers VanEck, 21Shares, Bitwise, and Canary Capital also joined the register.
Pandian noted that “These approvals signal increasing recognition from both institutions and the government. This is key because it really builds credibility and trust in the whole crypto financial system.”
At the end of the day, whether Grayscale gets the green light for their ETF will hinge on public opinion and how well they meet the SEC’s standards for protecting investors.
