XRP Price Soars as SEC Admits Grayscale ETF Application
XRP has seen a significant rebound after the U.S. Securities and Exchange Commission (SEC) formally acknowledged the New York Stock Exchange (NYSE) application for Grayscale’s XRP exchange-traded fund (ETF), marking the start of its formal review process.
XRP Price Surges
XRP surged more than 14.4% on Friday, hitting $2.77 following the SEC’s decision to admit Grayscale’s XRP ETF application. The approval of the application marks the start of the review process. While it does not guarantee approval, it stands in contrast to the SEC’s previous reluctance, which has led to similar applications being withdrawn.
The SEC has opened a 21-day public comment period, inviting market participants to share their views. After this period, the SEC will decide whether to approve, deny, or extend the review.
Ripple Labs CEO Brad Garlinghouse welcomed the decision, commenting on the X platform: "I remember pointing out - more than once - that this was inevitable. (despite some claims to the contrary!)"
Grayscale's XRP ETF Proposal
The XRP ETF application is part of Grayscale's larger strategy to convert more investment trusts into ETFs, following a similar path it took with the Bitcoin Trust. If approved, the XRP ETF would be listed on NYSE Arca, increasing liquidity and accessibility for investors.
Earlier this week, NYSE Arca applied to Grayscale to launch a Cardano (ADA) spot ETF. If approved, this would be the first ETF linked to Cardano.
SEC vs Ripple Battle Continues
The SEC’s move comes amid ongoing legal battles with Ripple over whether to classify XRP as a security. In January 2025, the SEC challenged a court ruling that partially dismissed the claims against Ripple, adding complexity to the case.
Despite these challenges, the SEC’s acknowledgement of Grayscale’s filing signals a potential shift in its stance on crypto ETFs. The SEC’s approval of a Bitcoin and Ethereum spot ETF in 2023 sets a precedent for funds based on digital assets.
The Downside
The SEC has previously rejected or ignored similar crypto ETF applications under previous leadership.
Why This Matters
The XRP ETF’s recognition suggests the SEC may be reassessing its approach, which has been affected by changes from the Trump administration and growing institutional interest in the cryptocurrency market.