SEC accepts Grayscale XRP Trust ETF proposal, XRP jumps 4% to $2.60
XRP jumps 4% to $2.60
As reported by Binance Square citing PANews, the U.S. Securities and Exchange Commission (SEC) has officially accepted the 19b-4 application submitted by Grayscale and the New York Stock Exchange (NYSE) to convert the Grayscale XRP Trust into an exchange-traded fund (ETF).
While this development does not guarantee approval, it signals a more open stance by the SEC toward cryptocurrency ETFs.
On the morning of February 14, XRP rose by over 4% to $2.60 following the SEC's acceptance of Grayscale and NYSE's application to transform the Grayscale XRP Trust into an ETF. It is expected that the SEC will publish the application in the Federal Register within a few days, initiating a 240-day review period.
Price dynamics of XRP on February 14, 2025. Source: CoinMarketCap
Currently, applications for XRP ETFs have also been filed with the SEC by Bitwise, 21Shares, Canary Funds, and WisdomTree. The acceptance of the XRP ETF application suggests that ETFs for cryptocurrencies such as Litecoin (LTC), Dogecoin (DOGE), Solana (SOL), and XRP could be approved under the new administration.
“This recognition highlights the difference between the current SEC administration and that of Gary Gensler, which refused to provide space for cryptocurrency ETFs beyond Bitcoin and Ethereum ETFs,” noted Fox Business News journalist Eleanor Terrett.
Additionally, some believe that the approval of an XRP ETF would signify the end of the SEC’s case against Ripple, which remains critical for the company.
The SEC may reconsider XRP's status as a security
Given recent developments during Donald Trump’s administration, most members of the crypto community expect the SEC to drop the appeal filed by the former SEC administration against Judge Analisa Torres’s decision in the Ripple case.
After the SEC and Binance jointly requested a 60-day pause in their legal proceedings, citing the impact of the SEC’s newly established crypto task force on regulatory changes, a similar agreement could be reached in the SEC’s case against Ripple.
SEC Commissioner Hester Peirce, who leads the task force, previously stated that the division aims to clarify the status of certain cryptocurrencies under the agency’s new regulatory changes.
If XRP is classified as a cryptocurrency that is not considered a security, it could mark the end of its four-year legal battle with the SEC. Such an outcome could stimulate adoption and attract significant inflows of capital into the remittance-based token.
As we wrote, the crypto community constantly debates the future of XRP, one of the largest digital assets. Some analysts predict significant growth, while others consider such forecasts unrealistic.One of the most ambitious scenarios suggests that XRP could reach $10,000 per token. But how realistic is this under current market conditions?
