As the US Securities and Exchange Commission (SEC) has scheduled its next closed-door meeting this Thursday, all eyes are on a potential XRP ETF approval. In addition, the SEC’s ongoing review of Grayscale Investment’s XRP ETF application has fueled anticipations of the product approval this week.
XRP ETF Approval Anticipation Grows: SEC Decision Looms
The US SEC has increasingly sparked optimism with repeated acknowledgments of XRP exchange-traded funds. While this move highlights the agency’s shifting regulatory stance to crypto, the community expects an imminent approval of XRP’s investment product.
In a recent development, the SEC scheduled its next closed-door meeting on February 27, 2025 (Thursday). Notably, the regulator has directly highlighted the inclusion of discussions surrounding XRP ETF in the meeting. In particular, the SEC emphasized Cboe’s proposal to list and trade the XRP fund, stating,
Cboe BZX Exchange, Inc. (“BZX” or “the Exchange”) is filing with the Securities and Exchange Commission a proposed rule change to list and trade shares of the Bitwise XRP ETF under BZX Rule 14.11 (e)(4), Commodity-Based Trust Shares.
Grayscale’s XRP ETF Under Review: What It Means?
Notably, Grayscale Investment filed to convert its $16 million XRP trust to an exchange-traded fund in January 2025. After becoming the first XRP ETF to be acknowledged by the SEC, it recently entered the SEC review list.
Recently, the US SEC published Grayscale’s XRP ETF filing on the Federal Register, sparking widespread optimism. With the move, the SEC has begun a 240-day review period to decide whether to approve or oppose the ETF launch. Thus, the SEC’s decision on Grayscale’s XRP ETF could be expected before October 18, 2025.
Driven by the regulator’s recent announcement, the community anticipates an early approval of Grayscale’s XRP fund. However, as the SEC hasn’t mentioned Grayscale in the closed-meeting agenda, it remains unclear if the commission would consider it on the day.
Will SEC Lawsuit Settlement Precede ETF Approval?
Interestingly, the excitement around potential ETF approval is paired with increasing speculation about a looming Ripple lawsuit settlement. While the settlement of Coinbase and Robinhood cases has sparked excitement about an early Ripple lawsuit settlement, experts predict a possible delay. MetaLawMan stated that it could find a conclusion before Ripple files its appellate brief on April 16, 2025. He cited the complexities surrounding the lawsuit as the major reason for the delay.
Meanwhile, legal expert Jeremy Hogan commented that the XRP lawsuit settlement is likely to occur before the SEC’s XRP ETF approval. His statement was based on the long procedures involved in the regulatory approval of the fund.
XRP Price Slumps Despite Increasing ETF Odds
Significantly, the XRP ETF approval odds on Polymarket surged to 80%, fueling market adoption. While XRP awaits to join Bitcoin and Ether as the latest SEC-approved exchange-traded fund, the token value plummets to a 23 day-low.
As of press time, XRP is trading at $2.21, marking a daily decline of around 10%. Over the last week and month, XRP has faced grave dips of 15.7% and 28.8%, respectively. Most importantly, XRP, which enjoyed the third spot on CoinMarketCap over the past weeks, has slipped to the 4th position, with a market cap of $128 billion.
However, the growing ETF expectations have boosted investor confidence. This is demonstrated by the staggering 215.8% uptick in the daily trading volume, currently at $12.64 billion.
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