SEC Reviews XRP ETFs: Mainstream Acceptance Beckons

The Securities and Exchange Commission (SEC) has initiated a review of multiple proposals for XRP exchange-traded funds (ETFs) submitted by prominent asset managers. This development marks a significant step towards the mainstream acceptance of XRP as an investment product. The SEC acknowledged filings from CoinShares, Canary Capital, and WisdomTree, triggering a 21-day public comment period.

The SEC's review process began with the publication of these filings on its website, with applications submitted through the Nasdaq and Cboe BZX exchanges. Following the publication in the Federal Register, the SEC will have a 240-day window to make a final decision on approving or rejecting the proposals.

This recent surge in XRP ETF applications follows earlier submissions from Grayscale and Bitwise, which the SEC has also acknowledged. The increased activity in XRP ETF filings reflects the evolving cryptocurrency market and growing institutional interest in regulated crypto investment products.

While US regulators evaluate these applications, Brazil has taken the lead in the XRP ETF race. Asset manager Hashdex received approval from Brazil's SEC equivalent to launch the world's first spot XRP ETF, putting Brazil ahead of other countries in offering regulated XRP investment products.

The market has responded positively to these regulatory developments. XRP's price increased by 6% above $2.70 during early Asian trading on Thursday, with the cryptocurrency seeing $8.10 million in futures liquidations over 24 hours, with short positions accounting for $6.29 million of that total.

The SEC's current stance on cryptocurrency regulation shows signs of change under acting Chair Mark Uyeda. The agency has paused several legal actions against crypto companies, including cases against Coinbase and Binance. However, the SEC has not yet commented on its ongoing appeal against Judge Analisa Torres's ruling in the Ripple case.

The SEC's review process for these ETF applications comes at a time when the broader cryptocurrency market is experiencing increased institutional interest. The multiple ETF applications from established financial firms reflect growing demand for regulated crypto investment products.