XRP experienced a sharp rebound following the U.S. Securities and Exchange Commission’s (SEC) acknowledgment of Grayscale’s application for an exchange-traded fund (ETF) on the New York Stock Exchange (NYSE) Arca. This marks the beginning of the formal review process, signaling a potential shift in the regulatory landscape.
On Friday, XRP’s price soared over 14.4%, reaching $2.77 in response to the SEC’s recognition of Grayscale’s ETF filing. While this acknowledgment does not ensure approval, it contrasts with the regulator’s past reluctance, which led to multiple cryptocurrency ETF applications being withdrawn.
The SEC has now initiated a 21-day public comment period, allowing market participants to express their views. After this phase, the commission will determine whether to approve, reject, or extend the review of the application.
Brad Garlinghouse, CEO of Ripple Labs, responded to the news on X, stating, “I recall pointing out – more than once – that this was inevitable. (Despite some vocal assertions to the contrary!).” His remarks reflect growing optimism within the crypto community regarding regulatory advancements.
Grayscale’s proposal for an XRP ETF is part of a broader strategy to convert several of its investment trusts into ETFs, following a similar approach taken with its Bitcoin Trust. If approved, the XRP ETF would trade on NYSE Arca, offering enhanced liquidity and accessibility to investors.
Earlier this week, NYSE Arca also submitted an application for Grayscale to launch a Cardano (ADA) spot ETF. If granted approval, this would be the first ETF linked to Cardano, highlighting the expanding interest in cryptocurrency-based investment vehicles.
The SEC’s acknowledgment of Grayscale’s filing comes amid its ongoing legal battle with Ripple over whether XRP should be classified as a security. In January 2025, the SEC contested a court ruling that had partially dismissed claims against Ripple, adding further complexity to the case.
Despite these legal hurdles, the regulator’s decision to proceed with the review of Grayscale’s application suggests a potential reassessment of its stance on cryptocurrency ETFs. The SEC’s approval of spot Bitcoin and Ethereum ETFs in 2023 set a precedent for digital asset-based funds, and this latest development could indicate a growing openness toward crypto-related financial products.
Historically, the SEC has either rejected or ignored similar ETF applications under previous leadership. However, its recent moves suggest that evolving regulatory perspectives, combined with increasing institutional interest, may be influencing its approach. If approved, Grayscale’s XRP ETF could represent a significant step forward for cryptocurrency adoption within mainstream financial markets.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist