SEC Given 240 Days to Decide on XRP ETF
In a recent turn of events, the Securities and Exchange Commission (SEC) has been allotted a firm 240-day timeframe to deliver a verdict on the XRP exchange-traded fund (ETF). This development comes on the heels of the publication of 19b-4 filings related to two XRP-centric investment products—namely the Grayscale XRP Trust and the 21Shares Core XRP Trust—in the Federal Register.
The Deadline is Set for XRP ETF
On February 20, the NYSE Arca submitted a 19b-4 filing seeking to list and trade shares of the Grayscale XRP Trust, sparking attention across the financial community. Fox Business correspondent Eleanor Terrett took to X to shed light on this significant milestone, indicating that the clock is now ticking for the SEC to deliberate and deliver a resolution by October 18.
Additionally, Cboe joined the fray on February 21 by filing a similar request for the 21Shares Core XRP Trust. The SEC has until October 19, 2025, to make a decision on this filing, effectively marking the culmination of the regulatory scrutiny process for both initiatives.
The SEC had previously acknowledged these filings, but with the official posting now in motion, the 240-day evaluation period has been officially triggered. The SEC's upcoming decision will determine whether to greenlight, dismiss, or prolong its scrutiny of these XRP ETF proposals.
Market Speculations on XRP ETF Performance
Currently, the US market only boasts two tradeable cryptocurrency ETFs—Bitcoin (BTC) and Ethereum (ETH). While Bitcoin enjoys substantial demand, the performance of a possible Ethereum ETF remains a topic of debate, raising uncertainties about the prospects of an XRP ETF.
Bitwise CIO Matt Hougan shared his insights on the anticipated XRP ETF in a recent CNBC interview, expressing optimism about the market reception. He emphasized the strong community backing and active trading of XRP on centralized exchanges, underscoring investors' desire for a convenient and cost-effective investment avenue for the asset.
Furthermore, Hougan highlighted a shift in the SEC's stance under the new administration, pointing out a more receptive attitude towards constructive dialogues on emerging topics. He expressed confidence in the future approval of XRP ETFs and hinted at similar developments for assets like Solana.
As anticipation mounts within the crypto sphere, Polymarket's prediction platform currently places an 81% likelihood on the approval of an XRP ETF in 2025, setting the stage for a potentially transformative moment in the cryptocurrency investment landscape.