SEC Advances XRP ETF Filings

This move signals growing institutional interest in XRP-based investment products and has fueled optimism about the cryptocurrency's long-term prospects.

The United States Securities and Exchange Commission (SEC) has officially acknowledged applications to list spot XRP exchange-traded funds (ETFs) on Nasdaq and Cboe BZX by asset managers CoinShares, Canary, and WisdomTree.

According to SEC filings on Feb. 19, the applications are now open for public comment for 21 days, after which the SEC has up to 240 days to approve or reject the ETF proposals.

This move follows the SEC’s recent approval of Grayscale and Bitwise’s applications to launch spot XRP ETFs. While the approval of spot Bitcoin (BTC) ETFs earlier this year set a precedent, the SEC is still deliberating on XRP ETFs due to the ongoing lawsuit with Ripple Labs.

XRP price responds to growing institutional interest

After the SEC's acknowledgment of the filings, XRP price rose by 6% and briefly touched $2.70 during early Asian trading hours on Thursday. This upswing in XRP price reflects improving investor sentiment.

According to analysts, a sustained move above these crucial resistance levels could propel XRP on a trajectory toward its seven-year peak at $3.40. At press time, XRP price is up 4.73% over the past 24 hours and trades at around $2.67.

Technical indicators, such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), also suggest bullish strength. If XRP manages to hold support at $2.55 and break the resistance level at $2.72, analysts anticipate that it will gain further momentum.

Legal uncertainty looms over SEC ruling

Despite the encouraging development of XRP ETF applications being approved, the SEC’s ongoing legal battle against Ripple is expected to influence the final decision.

During Acting Chair Mark Uyeda's tenure, the SEC has deferred some cryptocurrency enforcement cases. However, the agency has yet to indicate whether it will drop its appeal of Judge Analisa Torres's ruling in favor of Ripple.

Legal professionals, including Fox Business journalist Eleanor Terrett, have noted that the SEC is prioritizing cases with approaching deadlines, such as Ripple's next court filing on April 16. As a result, some speculate that we may not witness dramatic developments in the case until then.

Brazil approves first spot XRP ETF

While the United States awaits regulatory clarity, asset manager Hashdex has obtained approval from Brazil's securities regulator to launch the world's first spot XRP ETF. This milestone highlights the international demand for XRP-based investment products and could pave the way for similar offerings in other jurisdictions.

Following a trend of increasing global acceptance of cryptocurrency ETFs, Hashdex’s approval marks a significant development in Brazil. As several other XRP ETF applications are being reviewed in the U.S., investors are closely watching to see if the SEC will follow suit.

Market outlook: XRP's path to $3.40 and beyond

XRP's ability to sustain its recent gains will depend on several factors, including the potential ETF approval, legal clarity, and the broader market conditions.

If the SEC ultimately approves a Ripple XRP ETF, analysts anticipate that it could drive institutional inflows and push XRP toward new highs. Conversely, a protracted legal battle or regulatory challenges could delay XRP's momentum.

Nevertheless, with growing institutional interest and increasing global adoption, cryptocurrency is remaining a hot topic in the evolving digital asset landscape. As the SEC's 240-day review period commences, XRP investors will be keeping a close watch on both regulatory developments and price movements in anticipation of a potential breakout.