Grayscale's XRP ETF Application Formally Acknowledged by the SEC

According to Nate Geraci, the US Securities and Exchange Commission (SEC) has officially acknowledged Grayscale's XRP filing to launch an ETF.

The US Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s XRP filing to launch an exchange-traded fund (ETF) product.

According to Nate Geraci, co-founder of The ETF Institute, the SEC has published a notice to solicit potential investors' comments from the public. As a result, the decision clock has started ticking.

Geraci's tweet on Wednesday, October 30, reads:

“SEC has formally acknowledged filing to convert Grayscale Digital Large Cap Fund (GDLC) into an ETF… GDLC holds approx 77% BTC, 17% ETH, & remainder in SOL, XRP, & AVAX. SEC now soliciting public comments & decision clock starts ticking.”

What’s Next for Graysclale’s XRP ETF Application?

Besides XRP, the multi-asset fund offers exposure to other cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), and Solana (SOL). Bitcoin has the largest weighting of the fund’s Assets Under Management (AUM) at 77%. Ethereum follows with an AUM of 17%.

The SEC's acknowledgment has sparked excitement among the XRP Army. Many praised the SEC’s consideration as they look to see the next step in the XRP ETF approval.

An XRP ETF would mark a huge step for the coin’s adoption, offering investors new opportunities and potentially increasing market stability. Bitwise and Canary Capital also submitted XRP ETF applications earlier this month.

As CNF mentioned, signs of an improving regulatory environment and rising demand for ETF-related products for top cryptocurrencies inspired Canary’s decision.

However, market participants claim the SEC will likely not approve Bitwise and Canary’s XRP ETF products soon. In an earlier CNF report, Geraci expressed optimism, predicting that approval is likely.

Geraci believes a change in the US President or SEC administration is crucial for XRP’s ETF progress. The current SEC administration has expressed a cautious stance on crypto ETFs other than Bitcoin and Ethereum.

While Bitcoin ETFs have had tremendous success, it took about a decade for this product to eventually receive approval.

Moreover, resolving Ripple's legal situation with the SEC could greatly affect the ETF's fate. However, Ripple CEO Brad Garlinghouse has stated on multiple occasions that an XRP ETF is “inevitable.”

XRP Price Today: Live Updates on Coin’s Value, Legal Case Status

At press time, XRP is trading at $0.1587, down 1.02% in the last 24 hours and 1.5% in the past week.

In the last 24 hours, the coin’s 24-hour trading volume also decreased by 11.7%, with a total of $885 million in trades. This suggests pessimistic sentiments from investors as XRP’s price continues to show signs of a short-term downtrend.

It is also crucial to note that XRP's current price drop comes amid short-term volatility in the broader market.

Meanwhile, the ongoing case between Ripple and SEC is gradually making progress. According to a recent CNF post, Ripple executives Brad Garlinghouse and Chris Larsen have hired key attorneys to dismiss allegations in the XRP lawsuit.

On the other hand, the SEC has asked the Second Circuit Court to establish a January 15, 2025, deadline for its major brief on the appeals. This signals that the SEC is poised to tighten its case against Ripple with the appeal.