Washington, D.C. The U.S. Securities and Exchange Commission (SEC) plans to reveal its choice regarding Grayscale Investments’ effort to transform its XRP Trust into a spot exchange-traded fund (ETF) before or on February 13 based on reports.
On January 30, Grayscale initiated its 19b-4 filing, which opened a normal 15-day period for the SEC to respond. Through this proposed ETF, investors can reap XRP benefits by trading securities that exclude owning the cryptocurrency directly. Grayscale’s XRP Trust currently holds $16.1 million in assets and seeks SEC approval to list on the New York Stock Exchange.
SEC Decision on XRP ETF Signals Regulatory Shift
The upcoming SEC decision about XRP creates significant attention because it will show how the agency handles XRP in its continuing dispute with Ripple and could signify evolving XRP regulations. A federal court established that XRP functions as a non-security during secondary market trading, which could guide the SEC in its financial products regulation approach involving the asset.
Investors show positive views about the SEC approving an XRP ETF because prediction market Pollands Polymarket shows an 81% belief that such approval will happen this year. The current market situation poses difficulties for XRP because its January peak value declined 30% while trading volumes and futures open interest rates diminish.
The approval of XRP ETF would create another financial product that joins an expanding number of cryptocurrency-based investments that seek broader acceptance from traditional investors. A positive ruling from the SEC regarding Grayscale’s application might become the reference point for potential digital asset ETFs in American marketplaces.
