XRP ETF Approval!!!
The heightened optimism follows Grayscale’s latest move to transform its XRP Trust into a fully-fledged ETF. The asset manager filed a 19b-4 application with the SEC on January 30, seeking to list the fund on NYSE Arca.
According to the filing, Grayscale’s XRP Trust is one of the largest investment vehicles tied to Ripple’s native token, with more than $16 million in assets under management. Coinbase Custody Trust will be designated as the custodian for the proposed fund.
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Grayscale has argued that converting the trust into an ETF would offer investors a more regulated and accessible way to gain exposure to XRP.
The firm joins other investment companies, including CoinShares, WisdomTree, ProShares, REX Shares, and Bitwise, that had also submitted applications for an XRP ETF earlier on.
Ripple’s legal battle with the SEC still unresolved
Meanwhile, XRP’s future as an ETF asset could face market troubles due to Ripple’s case with the SEC. In late 2020, the regulator accused Ripple Labs and its executives of conducting an unregistered securities offering worth $1.3B.
The financial watchdog saw its case partially dismissed in 2023. U.S. District Judge Analisa Torres ruled that XRP, when sold on secondary markets, did not qualify as a security against the SEC’s claims. Judge Torres found that Ripple’s programmatic sales of XRP to retail investors “lacked the characteristics” of an investment contract.
There is market speculation that the lawsuit has been quietly dismissed after references to the case were removed from Ripple’s litigation website. Attorney Jeremy Hogan clarifies that the lawsuit is still active. This is to mean that the removal did not indicate any formal agreement.
If XRP breaks past the mark in the coming week, it could test the $3.84 all-time high price reached seven years ago, although it may struggle to breach $4 before mid-February.
