SEC Approval for Spot XRP ETF: What to Expect by 2025

SEC Approval for Spot XRP ETF: Anticipating the Timeline

As the cryptocurrency landscape evolves, many traders are eagerly awaiting a more open trading environment, with significant attention on the potential launch of XRP Exchange-Traded Funds (ETFs). The pursuit of approval for Spot XRP ETFs is gaining traction, as major players in the financial sector submit their applications to the U.S. Securities and Exchange Commission (SEC).

Firms Competing for SEC Approval

Notable firms such as Bitwise Asset Management, Canary Capital, 21Shares, and WisdomTree have joined the race to secure approval for XRP-focused ETFs. This heightened activity underscores the growing interest in institutional-grade investment products tied to XRP.

The process began with Bitwise’s S-1 filing on October 2, 2024, followed by 21Shares’ application for Core XRP Trust shares on November 1. The latest submission came from WisdomTree on December 2, proposing the “WisdomTree XRP Fund” for listing on the Cboe BZX Exchange. These filings reflect an increased demand for regulated, secure access to XRP-based investments.

Shifting Regulatory Landscape

Historically, the SEC has been cautious about approving crypto ETFs, citing concerns over market manipulation and inadequate regulatory oversight. However, the approval of BlackRock’s Spot Bitcoin ETF earlier in 2024 has marked a potential shift in the SEC’s attitude toward cryptocurrency ETFs.

Adding to the optimism is the anticipated departure of SEC Chair Gary Gensler. Gensler’s strict regulatory approach to cryptocurrencies has been a significant hurdle, and his exit could pave the way for a more favourable outlook on crypto-related investment products.

Ripple’s recent legal victories in its dispute with the SEC regarding XRP’s classification as a security have also strengthened the case for XRP ETFs. These outcomes have provided clarity and bolstered XRP’s position within the regulatory framework.

Potential Impact of a Spot XRP ETF

Market analysts believe that the approval of a Spot XRP ETF could significantly enhance XRP adoption. Such a move would make XRP more accessible to institutional investors, likely boosting its liquidity and market value. By offering a regulated investment vehicle, ETFs could attract a broader range of investors to the cryptocurrency market.

Approval Timeline and Expectations

The SEC typically responds to S-1 filings within 30 days, but the overall approval process can take several months. If the current applications align with previous trends, decisions on Spot XRP ETFs might emerge by the first or second quarter of 2025.

This growing momentum in the race for Spot XRP ETF approval signals a pivotal moment for the cryptocurrency market. Should these ETFs gain the green light, they could open the door to a new era of institutional investment in XRP.