The Securities and Exchange Commission (SEC) has acknowledged NYSE Arca's filing to list and trade the Grayscale XRP Trust as an exchange-traded fund (ETF), marking the beginning of the regulatory review process.
The proposal, submitted on January 30, will now enter a 21-day public comment period where market participants can provide feedback on the potential XRP ETF listing. This development represents the first formal step in the evaluation process, though final approval remains uncertain.
The timing of the SEC's acknowledgment has drawn attention from market observers, as it comes under new leadership following the departure of former Chair Gary Gensler. The current commission appears to be processing crypto ETF applications at a faster pace compared to previous leadership.
The market responded positively to the news, with XRP's price climbing to $2.59, representing a 3.12% increase over 24 hours and a weekly gain of 9.32%. The cryptocurrency's market capitalization rose by $3 billion during the trading session.
This regulatory development carries broader implications for XRP's status. While a 2023 court ruling determined that XRP is not a security when traded on exchanges, questions remain about its classification in institutional offerings. The SEC's ongoing lawsuit against Ripple, XRP's largest corporate holder, also remains unresolved.
Market participants note that an SEC acknowledgment does not guarantee eventual approval. The proposal must undergo thorough regulatory scrutiny and public feedback before a final decision is reached. For context, spot Bitcoin ETFs required nearly a decade before receiving regulatory approval.
The SEC's review of the Grayscale XRP Trust ETF proposal adds another chapter to the evolving relationship between traditional financial products and digital assets, as regulators continue to shape the framework for cryptocurrency investment vehicles.