New XRP ETF Filing Gains SEC Notice, Driving Competitive ETF Race

• The US SEC has requested public comment about the XRP ETF-linked application from Grayscale.
• The prospects of XRP ETF remain debatable amid the sustained Ripple versus SEC legal battle.

According to Nate Geraci, the US Securities and Exchange Commission (SEC) has officially acknowledged Grayscale’s XRP filing to launch an ETF. Specifically, the firm seeks to convert the Grayscale Digital Large Cap Fund (GDLC) into a spot ETF product. 

What’s Next for Graysclale’s XRP ETF Application

Besides XRP, the multi-asset fund offers exposure to other cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), and Solana (SOL). Bitcoin represents the largest weighting of the fund’s Assets Under Management (AUM) at 77%. Ethereum comes behind with an AUM of 17%.

SEC has formally acknowledged filing to convert Grayscale Digital Large Cap Fund (GDLC) into an ETF…

GDLC holds approx 77% btc, 17% eth, & remainder in sol, xrp, & avax.

SEC now soliciting public comments & decision clock starts ticking. pic.twitter.com/5zl6vHmyKo

— Nate Geraci (@NateGeraci) October 30, 2024

Geraci, a co-founder of The ETF Institute, said that the SEC has published a notice to solicit public comments from potential investors. As a result, the decision clock has started ticking. The SEC’s acknowledgment has sparked excitement among the XRP Army. Many praised the SEC’s consideration as they looked to see the next step in the XRP ETF approval.

An XRP ETF would mark a huge step for the coin’s adoption, offering investors new opportunities and potentially increasing market stability. Bitwise and Canary Capital submitted XRP ETF applications earlier this month. As CNF mentioned, signs of an improving regulatory environment and rising demand for ETF-related products for top cryptocurrencies inspired Canary’s decision.

Market participants claim the SEC will unlikely approve Bitwise and Canary’s XRP ETF products soon. However, in an earlier CNF report, Geraci expressed optimism, predicting that approval is likely. Geraci believes a change in the US President or SEC administration change is crucial for XRP’s ETF progress. 

The current SEC administration has expressed a cautious stance on crypto ETFs other than Bitcoin and Ethereum. While Bitcoin ETFs have had tremendous success, it took about a decade for this product to eventually receive approval. 

Meanwhile, resolving Ripple’s legal situation with the SEC could greatly affect the ETF’s fate. Nonetheless, Ripple CEO Brad Garlinghouse has repeatedly stated that an XRP ETF is “inevitable.”

XRP’s Price and Updates in the Ripple vs SEC Case

As of this writing, the XRP price was $0.1587, down 1.02% in the last 24 hours and 1.5% in the past week. The 24-hour trading volume also decreased by 11.7% to $885 million, suggesting pessimistic sentiments from investors. 

It is important to note that XRP’s current price drop comes amid short-term volatility in the broader market.

Meanwhile, the ongoing case between Ripple and SEC is gradually making progress. According to a CNF post, Ripple executives Brad Garlinghouse and Chris Larsen have hired key attorneys to dismiss allegations in the XRP lawsuit.

On the other hand, the SEC has asked the Second Circuit Court to establish a January 15, 2025, deadline for its major brief on the appeals. This signals that the SEC is poised to tighten its case against Ripple with the appeal.