XRP saw a significant rebound following the US Securities and Exchange Commission’s (SEC) formal acknowledgment of the New York Stock Exchange (NYSE) Acra application for Grayscale’s XRP exchange-traded fund (ETF), marking the start of the official review process.
XRP Price Jumps
XRP’s price surged more than 14.4% on Friday, climbing back to $2.77 following the SEC’s decision to acknowledge Grayscale’s XRP ETF filing.
The acknowledgment of the applications marks the beginning of the review process. While it doesn’t guarantee approval, it contrasts with the SEC’s previous reluctance, which led to many similar applications being withdrawn.
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The SEC has opened a 21-day public comment period, inviting market participants to share their views. After this period, the SEC will decide whether to approve, deny, or extend the review.
Ripple Labs CEO Brad Garlinghouse welcomed the decision, commenting on the X platform: “I recall pointing out – more than once – that this was inevitable. (despite some vocal assertions to the contrary!)”
Grayscale’s XRP ETF Proposal
The XRP ETF application is part of Grayscale’s larger strategy to convert multiple investment trusts into ETFs, following a similar path it took with its Bitcoin Trust.
If approved, the XRP ETF would be listed on the NYSE Arca, enhancing liquidity and accessibility for investors.
Earlier this week, NYSE Arca applied for Grayscale to launch a Cardano (ADA) spot ETF. If approved, it would become the first ETF associated with Cardano.
Ongoing SEC vs Ripple Battles
The SEC’s move comes amid its ongoing legal battles with Ripple over whether to classify XRP as a security.
In January 2025, the SEC challenged a court ruling that partially dismissed claims against Ripple, adding further complexity to the case.
Despite these challenges, the SEC’s acknowledgment of Grayscale’s filing signals a potential shift in its stance toward cryptocurrency ETFs.
The SEC’s approval of spot Bitcoin and Ethereum ETFs in 2023 set a precedent for digital asset-based funds.
On The Flipside
- The SEC has previously rejected or ignored similar cryptocurrency ETF applications under prior leadership.
Why This Matters
The acknowledgment of the XRP ETF suggests the SEC may be reassessing its approach, which has been influenced by changes from the Trump administration and growing institutional interest in the cryptocurrency market.
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