Key Notes

Key Notes:

Major financial institutions are pursuing XRP ETFs following Bitcoin and Ethereum approvals, showing growing institutional interest in regulated crypto exposure.Market sentiment suggests a 78% chance of XRP ETF approval, reflecting optimism about potential regulatory changes under the new administration.The SEC is simultaneously exploring enhanced capabilities for existing crypto ETFs, including potential incorporation of staking mechanisms.

The race for an exchange-traded fund (ETF) for Ripple’s XRP continues, despite the digital asset being embroiled in a legal battle with the United States Securities and Exchange Commission (SEC). On February 18, the SEC acknowledges the XRP ETF filing from Cboe BZX Exchange and Bitwise.

This move comes shortly after the SEC formally acknowledged a similar proposal by Grayscale Investments to add an XRP ETF to its growing list of crypto-related funds. This development highlights the increasing interest from institutional players looking to capitalize on the XRP $2.58 24h volatility: 1.7% Market cap: $149.55 B Vol. 24h: $2.25 B market through regulated investment vehicles.

The Securities and Exchange Commission has opened a 21-day public comment period following the publication of Bitwise’s XRP ETF proposal. This 19b-4 filing marks the second phase in the regulatory evaluation process. During its review, the SEC will assess whether the proposal includes sufficient safeguards to protect investors from potential fraud and market manipulation.

The battle for a spot XRP ETF gained traction last year after the SEC, under Chair Gary Gensler, approved the trading of both Bitcoin and Ethereum ETFs. This regulatory milestone allowed institutional investors to gain exposure to the crypto market without directly holding the underlying assets.

With Bitcoin and Ethereum already available as ETFs, asset issuers have been actively working to expand their offerings. Financial giants like Grayscale, 21Shares, WisdomTree, and Bitwise have all filed applications with the SEC to offer spot XRP ETFs, hoping to tap into a broader market.

Although it remains uncertain whether the SEC will approve an XRP ETF, its acknowledgment of multiple filings suggests a possible shift in its stance on crypto-related investment products. Some analysts speculate that under a new administration, the Commission may become more open to approving additional crypto ETFs beyond just Bitcoin and Ethereum.

According to a FOX Business journalist Eleanor Terrett, the previous administration showed little interest in approving crypto ETFs outside the two largest digital assets. This stance led many financial firms to withdraw their applications for Solana ETFs due to concerns over regulatory resistance.

With Donald Trump back in office, the crypto industry is anticipating potential regulatory changes, given his pro-crypto stance. His administration could usher in a more favorable environment for digital asset ETFs, possibly increasing the likelihood of an XRP ETF approval.

Recent data from Polymarket suggests that the chances of an XRP ETF being approved now stand at approximately 78%. While this is not a guarantee, it reflects growing optimism among investors and industry players that regulatory barriers could soon be lowered.

Meanwhile, as asset issuers rush to introduce new crypto ETFs, industry executives are also exploring ways to enhance the capabilities of existing Bitcoin and Ethereum ETFs.

On Friday, Coinspeaker reported that the SEC is evaluating whether to incorporate staking into Bitcoin and Ethereum ETFs. The regulator is considering two possible approaches: enabling a fraction of an ETF’s assets to be staked via validator service providers or utilizing liquid staking tokens (LSTs), which would allow investors to redeem their assets without the need to unstake.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.

Chimamanda U. Martha on X

Marco T. Lanz on X