Ripple XRP Spot ETF Applications Acknowledged by SEC

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The U.S. Securities and Exchange Commission (SEC) has officially acknowledged Grayscale and NYSE Arca’s 19b-4 filing to list a spot XRP ETF — marking a pivotal moment in the digital asset’s journey toward mainstream financial integration. With this formal recognition, the regulatory clock has started, and the countdown to a potential approval decision is now underway.

This milestone doesn’t guarantee final approval, but it signals that the SEC is actively reviewing the proposal and moving it through the official process. The commission has opened a 21-day public comment period following the filing’s publication in the Federal Register. Once that window closes, regulators will evaluate feedback before deciding whether to approve, reject, or initiate formal proceedings on the application.

The 19b-4 filing is the second critical step in launching any spot ETF in the U.S. financial market. While earlier submissions focused on preliminary registration (via Form S-1), this stage deals directly with exchange listing rules and investor protections — making it a strong indicator that regulators are treating XRP with increasing legitimacy.

The Broader Crypto Thaw

This development comes amid a noticeable shift in the SEC’s stance toward digital assets. After years of resistance — particularly under former Chair Gary Gensler, who often classified cryptocurrencies as unregistered securities — the agency has recently greenlit spot Bitcoin ETFs in January 2024 and followed up with approvals for spot Ethereum ETFs.

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This evolving regulatory posture suggests a growing openness to innovation in digital finance. The acknowledgment of Grayscale’s XRP ETF filing fits squarely within this trend, reinforcing expectations of a more balanced and forward-looking approach from the commission.

Multiple asset managers have already submitted their own applications for spot XRP ETFs, including WisdomTree, Bitwise, 21Shares, and Canary Capital. These filings aren’t just procedural — they reflect serious institutional interest in bringing XRP to traditional investors through regulated, accessible vehicles.

Unlike futures-based ETFs, which track derivatives contracts, spot ETFs hold the actual underlying asset. That means investors could gain direct exposure to XRP price movements without needing to manage private keys or use cryptocurrency exchanges — lowering barriers for retail and institutional participation alike.

Why a Spot XRP ETF Matters

A spot XRP ETF would represent more than just another investment product. It could serve as a bridge between traditional finance and decentralized technologies, offering:

For years, Ripple and its native token XRP have faced legal uncertainty due to an ongoing lawsuit with the SEC over whether XRP qualifies as a security. However, recent court rulings have provided partial clarity, suggesting that XRP may not be a security when sold to retail investors.

With this precedent in place, combined with increasing global adoption of Ripple’s payment solutions by banks and financial institutions, momentum is building for regulatory acceptance of XRP-based financial products.

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Regulatory Winds Are Changing

The current political and regulatory environment appears increasingly favorable for crypto innovation. With a pro-digital asset administration in place and Paul Atkins confirmed as the new SEC chair — known for his balanced view on market innovation — expectations are rising that the agency may soon clear several pending crypto ETF applications.

Atkins’ background includes advocating for transparent, principles-based regulation rather than blanket crackdowns — a philosophy that aligns well with responsible crypto growth. His leadership could prove decisive in determining whether spot XRP ETFs receive final approval.

This isn’t just about one token or one ETF. It’s part of a larger transformation in how regulators perceive digital assets — from speculative instruments to legitimate components of modern portfolios.

Market Reaction: Bulls Re-Energized

Unsurprisingly, markets reacted swiftly to the news. XRP price surged approximately 4%, briefly touching $2.589 following confirmation of the SEC’s acknowledgment. According to data from BNC XRPLX, this move reflects growing confidence among traders and analysts that approval odds are improving.

Meanwhile, prediction markets are flashing bullish signals. On Polymarket, the probability of a spot XRP ETF being approved in 2025 has climbed to 81% — up significantly from earlier projections.

Analysts estimate that if approved, XRP ETFs could attract $4 billion to $8 billion in net new inflows within the first year alone. That level of capital injection would dramatically increase trading volume, enhance price stability, and likely push valuations higher — especially if major asset managers begin allocating client funds.

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Frequently Asked Questions (FAQ)

Q: What is a spot XRP ETF?
A: A spot XRP ETF is an exchange-traded fund that directly holds XRP tokens rather than futures or derivatives. It allows investors to gain exposure to real-time XRP price movements through traditional brokerage accounts.

Q: Has the SEC approved a spot XRP ETF yet?
A: Not yet. The SEC has acknowledged Grayscale’s 19b-4 filing, which starts the formal review process. Final approval is expected later in 2025, pending regulatory evaluation and public feedback.

Q: How does this affect the XRP price?
A: While no outcome is guaranteed, ETF approval typically increases investor demand and market liquidity. Analysts project significant upward pressure on XRP’s price if multiple spot ETFs are approved.

Q: Who has applied for a spot XRP ETF?
A: Major applicants include Grayscale, WisdomTree, Bitwise, 21Shares, and Canary Capital — all seeking to launch regulated, exchange-listed funds backed by physical XRP.

Q: Could political changes influence the decision?
A: Yes. The appointment of SEC Chair Paul Atkins — known for his pro-innovation stance — increases optimism around favorable rulings for digital asset products like XRP ETFs.

Q: When might we see an approval decision?
A: Based on typical SEC timelines after comment periods close, decisions could come in mid-to-late 2025 — assuming no delays or requests for additional information.

Final Outlook: A New Chapter for XRP?

We may be witnessing the beginning of XRP’s transition from a utility-focused digital asset to a fully recognized financial instrument. Regulatory acknowledgment, rising institutional interest, and strong market sentiment all point toward growing legitimacy.

If spot XRP ETFs are approved, it won’t just benefit holders — it could redefine how Wall Street views blockchain-based assets. This moment goes beyond speculation; it represents a structural shift toward inclusive, transparent, and regulated digital finance.

As the process unfolds, investors should stay informed, monitor official SEC updates, and consider how regulated crypto products might fit into broader portfolio strategies.

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