SEC Acknowledges Grayscale's XRP ETF Filing Amid Ongoing Lawsuit

The U.S. Securities and Exchange Commission (SEC) has acknowledged Grayscale's XRP ETF 19b-4 filing, marking a significant milestone for the altcoin, particularly as it remains embroiled in an ongoing lawsuit with the regulator. According to the filing, Grayscale seeks to convert its XRP Trust, currently managing $12.8 million in assets, into a Spot ETF. Other potential issuers, such as Canary Fund, 21Shares, WisdomTree, and Bitwise, are expected to receive similar sign-offs.

The SEC's standard procedure involves a 240-day review period to approve or deny the products' entry into the market. The regulator must also sign off on the S-1 registration statement form for the products to begin trading. The acknowledgment of Grayscale's filing has sparked reactions from the crypto community, with Nate Geraci of ETF Store viewing it as an "enormous message." He stated, "Shocked more people aren’t talking about SEC accepting XRP ETF filing... They have open litigation with Ripple. Meanwhile, they just acknowledged the filing of an ETF holding an asset in dispute (they easily could have rejected this filing). Enormous message IMO."

Eleanor Terrett, a FOX Business reporter, noted that while the move signals the SEC's 'open-mindedness,' it does not guarantee automatic approval. She said, "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." This shift in the regulator's attitude comes after issuers withdrew their SOL ETF applications in December following the previous SEC regime's indication that it wouldn't engage with them.

Optimism is growing among investors, with Polymarket's approval odds for an XRP ETF in 2025 rising to 80% in the last 30 days. On the price charts, XRP has climbed by 15% in just three days, reaching a value of $2.7 at press time, approximately 25% away from its latest all-time high of $3.4. Crypto analyst Ali Martinez believes that XRP could reclaim the $3 level soon, as it has doubled as the middle range target of the ascending range formed since last December.