• Grayscale’s recent approval of its XRP ETF could open doors for similar submissions in the future.
• Could the anticipation surrounding this ETF drive XRP’s price back to its recent peak of $3.4?

In a significant development for the altcoin market, the U.S. SEC has recognized Grayscale’s XRP ETF 19b-4 filing. This acknowledgment is notable given that it occurs amid an ongoing lawsuit between Grayscale and the regulator.

Grayscale aims to transform its XRP Trust, which currently has $12.8 million in assets under management, into a Spot ETF. Other companies, such as Canary Fund, 21Shares, WisdomTree, and Bitwise, have also submitted similar applications and may soon receive comparable approvals.

However, for these products to start trading, the SEC must endorse an S-1 registration statement. The regulator has up to an additional 240 days to either approve or reject the market entry of these products.

Is the Lawsuit Against Ripple Nearing an End?

The SEC’s acceptance of the 19b-4 filing has generated considerable buzz within the cryptocurrency community. Nate Geraci from ETF Store referred to the update as a “huge message,” commenting that it is surprising more people aren’t discussing the SEC’s recognition of the XRP ETF filing while it is still involved in litigation with Ripple. He stated:

“I’m shocked more people aren’t talking about the SEC accepting the XRP ETF filing…They have open litigation w/ Ripple. Meanwhile, they just acknowledged a filing of an ETF holding an asset in dispute (they easily could have rejected this filing). Enormous message, in my opinion.”

Meanwhile, FOX Business reporter Eleanor Terrett noted that while this signals the SEC’s increasing openness, it does not ensure automatic approval. She mentioned:

“No, it doesn’t mean automatic approval… So why is it notable? Because it means this SEC is being more open-minded and not flat-out refusing to consider these products.”

For perspective, issuers withdrew their applications for an SOL ETF in December following prior signals from the SEC that indicated a lack of interest in engaging with them. This shift suggests a changing attitude within the regulatory body.

Optimism is growing among investors as well. In fact, Polymarket’s projected approval odds for an XRP ETF in 2025 have surged to 80% over the past month.

Source: Polymarket

On the trading front, XRP recently surged by 15% within just three days, reaching approximately $2.7—about 25% shy of its latest all-time high of $3.4.

Crypto analyst Ali Martinez believes that XRP could soon recapture the $3 level, a crucial point that has acted as a central target in the upward trend observed since last December.

Source: X