Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
SEC Advances XRP ETF Review, Investors Await Decision
Crypto | Feb 14, 2025
Image: Freepik
SEC Acknowledges XRP ETF Filing Kicking Off Regulatory Review, Investors Optimistic
According to February 13, 2025 SEC filing No. 34-102420, the U.S. Securities and Exchange Commission (SEC) officially acknowledged a proposal from the New York Stock Exchange (NYSE) and Grayscale to introduce an exchange-traded fund (ETF) based on XRP (a cryptocurrency developed by Ripple Labs). Markets are confident that an XRP ETF is imminent which would bring XRP one step closer to becoming part of traditional investment portfolios.
See: BlackRock Expands IBIT Bitcoin ETF Offering in Canada
On January 30, 2025, NYSE Arca (subsidiary of NYSE, electronic exchange specializing in ETFs and equities) asked the SEC for permission to list and trade shares of the Grayscale XRP Trust under existing rules for commodity-based trust shares. The SEC accepted the updated proposal on February 13, 2025, starting a review process that could take up to 240 days. During this time, regulators will gather public feedback and evaluate the proposal before making a final decision.
Market Impact and Regulatory Considerations
According to Bloomberg analysts, Eric Balchunas and James Seyffart, there's a 65% chance that the XRP ETF will be approved in 2025 given the SEC's new approach towards crypto-based financial products.
On the decentralized betting platform Polymarket, there's currently a 78% of an XRP ETF being approved by Dec 31.
Sentiment of XRP's spot price is bullish and on the move. Investors looking to calculate current XRP values or conversions can use the paybis xrp calculator for quick and accurate results based on real time rates.
An XRP ETF would make XRP more accessible to institutional investors via a regulated investment vehicle. It would also increase market liquidity, reducing volatility, while also establishing a precedent for future altcoin ETFs ranging from Solana to Dogecoin.
Ripple vs SEC
Ripple Labs is still in a legal standoff with the SEC over the classification of XRP as a security with the SEC filing an appeal in January to overturn the 2023 ruling that XRP is not a security when sold to investors. However, XRP lawyers claim that the arguments largely rehash prior claims with no new substantial evidence. Given that the Trump administration's stance on crypto broadly has shifted away from a regulate by enforcement towards developing a comprehensive framework, market sentiment is relatively positive.
See: Crypto ETF Battle Intensifies with XRP Dogecoin and Solana
Notably in a related case, the SEC and Binance recently filed a joint motion to pause their litigation for 60 days, citing the new Crypto Task Force as a potential avenue for resolution. This move has led many to speculate that the SEC might adopt a similar approach in its case against Ripple, possibly pausing, settling or dismissing the lawsuit.
Final Thoughts
The SEC’s review of the XRP ETF is now open for public comments, with industry leaders, financial firms, and investors closely watching for any regulatory signals. Stay tuned for more XRP regulatory updates.
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