The SEC has officially acknowledged Grayscale's filing to convert its XRP trust into an ETF.
Even though this does not necessarily mean that the SEC is going to approve the proposed XRP, the mere acknowledgment already marks a significant breakthrough for the token.
According to leading ETF analyst Nate Geraci, the SEC has just sent an “enormous message” about the token.
It is worth noting that the agency remains in open litigation with Ripple, the company linked to the XRP token.
In October, the SEC moved to appeal the case. Last month, it filed its opening brief, outlining its arguments. Ripple quickly dismissed the lawsuit as “noise.”
As reported by U.Today, Grayscale launched its XRP trust in September, offering accredited investors simple access to the controversial token.
The leading cryptocurrency asset manager then applied to convert the first into an ETF in January, following its usual playbook.
Back in 2023, it sued the SEC over its refusal to let it convert Grayscale Bitcoin Trust (GBTC), the company’s crown jewel, into an ETF. Grayscale ended up emerging victorious in this court fight, paving the way for the eventual approval of Bitcoin ETFs by the SEC in January.
Geraci believes that the SEC could have easily rejected Grayscale’s XRP filing.
Godfrey Benjamin
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Vladislav Sopov