Key Insights:
- 21Shares joins Grayscale in race for US XRP ETF; SEC review starts with 21-day public comment.
- SEC acknowledges XRP ETF applications, extending review process up to 240 days.
- Crypto expert predicts XRP could soar to $5.85 as SEC reviews new ETF filings.
The U.S. Securities and Exchange Commission (SEC) has officially acknowledged multiple spot XRP exchange-traded fund (ETF) applications, increasing speculation about market growth.
With several firms, including Grayscale, 21Shares, WisdomTree, and Bitwise, seeking approval, market analysts are closely watching the SEC’s activities.
SEC Acknowledges Multiple XRP ETF Applications
The SEC has acknowledged the filing of spot XRP ETF by 21Shares after nodding Grayscale’s yesterday. These companies are asset managers seeking to offer investment products tied to XRP’s performance.
Regulatory filings were made by the Chicago Board Options Exchange (Cboe BZX) seeking to list shares of these ETFs.
The SEC’s nod establishes a regulatory review timeline, with a final decision due by October 2025.
Like Grayscale’s application which was acknowledged on February 14, and the 21Share will enter a 21-day public comment period as part of a standard review process.
During this period, market participants can express opinions about the proposed ETF before the SEC takes further steps in the review process.
Market Analysts Weigh in on XRP ETF Approval Chances
Industry analysts have shown different opinions regarding the chances of a spot XRP ETF being approved by the SEC.
Bloomberg analysts Eric Balchunas and James Seyffart put the odds of approval at 65% this year. However, some think that XRP faces more regulatory challenges than Bitcoin-based ETFs.
Grayscale has also applied for other crypto ETFs, including Solana (SOL), Litecoin (LTC) and Dogecoin (DOGE).
Analysts argue that exchange-traded funds (ETFs) for Litecoin and Dogecoin could be reviewed more easily because they are similar to Bitcoin. Nevertheless, XRP remains under regulatory pressure following its legal run-in with the SEC.
Ripple CEO Expresses Optimism About XRP ETF
Ripple CEO Brad Garlinghouse has expressed confidence that an XRP ETF will eventually be approved in the U.S. Despite ongoing regulatory challenges, he stated that such an investment product is “inevitable”.
The acknowledgement of these filings has fueled speculation as to just where the SEC stands on Ripple. The agency had earlier sought a lawsuit against Ripple Labs over XRP being considered a security.
Some experts say that if the SEC greenlights an XRP ETF, it could be a sign that the organization is changing its whole crypto regulatory approach.
This move is backed by the agency’s decision to postpone several crypto cases including Binance case ahead of crypto task force’s review of crypto regulation.
XRP Price Outlook as ETF Speculation Grows
The price of XRP has had drastic swings, particularly due to the progress made concerning the ETFs.
At the time of writing, XRP was changing hands at $2.73, a 7.8% intraday surge with the analysts giving short-term targets of $2.90 and $5.85.
Traders have noticed that indicators, such as the Relative Strength Index (RSI) portrayed a bullish signal at the time.
Market sentiment has also reacted to news and rumors of the increased adoption of the solution in the banking industry in Japan.
WallStreetBulls, a crypto-associated group, have recently took to social media to announce that Japanese banks are adopting XRP. This may well lead to an increase in the demand for the asset.
With the approval process in the hands of the SEC, the market awaits further updates from the agency.
According to analysts, should there be an ETF on XRP, it will most likely be embraced by institutional investors that will push XRP to new all time highs.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.