Grayscale XRP ETF Countdown Begins as Filing Hits Federal Register

The filing for Grayscale’s proposed XRP exchange-traded fund has officially hit the U.S. Securities and Exchange Commission’s Federal Register, bringing it one step closer to becoming a reality.  

The publication, which entered on Thursday, has triggered a 21-day comment period, with the regulator expected to approve, deny, or further review Grayscale’s filing by October 18.

If approved, the ETF would provide a regulated vehicle for exposure to XRP, one of the most talked-about cryptos in the market, amid optimism surrounding its legal and regulatory status.

Speaking to Decrypt, Saravanan Pandian, CEO and founder of crypto exchange KoinBX, said while the review process will involve assessing market risks, investor protections, and legal classifications, a potential approval could set a “transformative precedent for XRP and the broader crypto ecosystem.”

“In the long run, approvals of crypto-based ETFs, like Grayscale’s XRP ETF, could significantly impact the crypto community by legitimizing digital assets as a recognized investment class,” Pandian added.

The crypto’s recent resurgence has been fueled by reports such as the potential use of the token by Bank of America for internal transactions, alongside speculation about the SEC’s stance on Ripple’s long-standing legal battle. 

While XRP is down 1% on the day to $2.66, it’s up by more than 381% over the past 12 months, CoinGecko data shows.

The SEC’s lawsuit, filed in December 2020, accused Ripple of raising over $1.3 billion through unregistered XRP sales, classifying the token as a security under the Howey Test. 

“There is a high likelihood that an XRP ETF will launch this year,” Arthur Azizov, CEO of crypto payment solution B2BINPAY, told Decrypt. “How soon will depend on how quickly the legal disputes with the SEC are resolved.”

He added: “Since an ETF would provide institutional investors with easier access to XRP, it would significantly increase capital inflows into the asset, driving its price higher.”

It comes as several issuers are vying to push through crypto ETFs now that Acting Chair Mark Uyeda is in charge, with crypto participants eyeing a change in the regulator’s stance on the industry.

The agency has already acknowledged multiple XRP ETF filings in the past few weeks from Canary Capital, WisdomTree, Bitwise, CoinShares, and 21Shares, 

Grayscale’s proposal joins others in a list of altcoin ETFs published in the Federal Register as Solana (SOL) ETF filings from asset managers VanEck, 21Shares, Bitwise, and Canary Capital were added to the Federal Register on February 18.

“These approvals signal increasing institutional and governmental recognition, which boosts credibility and fosters trust in the broader financial ecosystem,” Pandian said.

In any case, the path to approval for Grayscale’s ETF depends on public feedback and its compliance with SEC investor protection standards.

Edited by Sebastian Sinclair