The U.S. Securities and Exchange Commission (SEC) has officially acknowledged the XRP ETF application submitted by asset manager 21Shares, marking a pivotal development in the long-anticipated launch of a spot XRP exchange-traded fund. This milestone, confirmed on Friday, follows the SEC’s recognition of Grayscale’s XRP ETF just one day earlier—signaling a potential shift in the regulator’s stance toward digital asset-based financial products.
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This dual acknowledgment has energized the XRP community, reigniting hopes for regulatory approval later this year. With these filings now formally under review, investors and market analysts are closely watching the next steps in what could become a transformative moment for XRP and the broader cryptocurrency ecosystem.
The Current State of XRP ETF Applications
Currently, the SEC is reviewing multiple Form 19b-4 applications for spot XRP ETFs. These filings were submitted through the Cboe BZX Exchange and include proposals from major asset managers such as Bitwise, Canary, 21Shares, and WisdomTree. The recent acknowledgment of both Grayscale’s and 21Shares’ applications suggests that the remaining submissions may soon receive similar treatment.
Historically, the SEC has been cautious—or even dismissive—of cryptocurrency-related ETFs, particularly those not backed by physical assets like Bitcoin or Ethereum. However, the current wave of acknowledgments indicates a more open regulatory posture, especially under the interim leadership of Mark Uyeda, who has shown greater receptiveness to crypto innovation compared to previous SEC chairs.
It’s important to clarify that an "acknowledgment" does not equate to approval. Instead, it means the SEC has accepted the filing into its formal review process and will now begin evaluating its compliance with securities laws, market fairness, and investor protection standards.
Still, this step is far from symbolic. In late 2023, several Solana-based ETF applications were withdrawn after the SEC signaled it would not engage with them—a stark contrast to today’s developments. The fact that the SEC is now actively processing XRP ETF filings suggests a meaningful evolution in regulatory sentiment.
Understanding the 240-Day Review Timeline
Once an ETF application is published in the Federal Register, a mandatory 240-day review period begins. According to FOX Business correspondent Eleanor Terrett, this publication is expected within days, meaning the clock on the SEC’s decision-making process could start imminently.
During this window, the SEC will assess:
- Market structure and liquidity of XRP
- Potential for fraud and manipulation
- Investor demand and education
- Custody and valuation mechanisms
If the agency requires more time or has concerns, it can extend the review or issue a “notice of denial.” However, it can also respond with an approval order—paving the way for listing on major exchanges like NYSE Arca or Nasdaq.
Given the timeline, a final decision on the Grayscale and 21Shares XRP ETFs is likely to arrive in Q4 2025, aligning with growing anticipation across the digital asset space.
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Why an XRP ETF Matters for the Crypto Market
The introduction of a spot XRP ETF would represent a major leap forward for institutional and retail investors alike. Similar to Bitcoin and Ethereum ETFs, an approved XRP ETF would offer:
- Regulated exposure to XRP without holding the asset directly
- Easier access through traditional brokerage accounts
- Improved liquidity and price discovery
- Greater legitimacy for XRP as a financial instrument
Moreover, approval would strengthen Ripple Labs’ position in its ongoing legal battle with the SEC over whether XRP qualifies as a security. While a federal judge previously ruled that XRP is not a security when sold to retail investors, the broader classification remains contested. An ETF approval could reinforce the view that XRP operates more like a commodity than a security.
For investors, this means reduced regulatory risk and increased confidence in long-term holdings.
XRP Price Surge Reflects Market Optimism
Unsurprisingly, market sentiment has turned sharply positive following the news. As of today, XRP is trading at $2.76, reflecting an 8% gain over the past 24 hours and a staggering 17% weekly increase. This rally underscores how deeply investor psychology is tied to regulatory progress.
The price movement also highlights growing demand for regulated crypto investment vehicles. With Bitcoin ETFs already managing over $50 billion in assets and Ethereum ETFs gaining traction, investors are eager for diversified exposure—and XRP stands out due to its use case in cross-border payments and financial settlement systems.
While past performance doesn’t guarantee future results, technical indicators suggest bullish momentum may continue if no negative regulatory surprises emerge.
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Core Keywords Integration
Throughout this evolving narrative, several key themes dominate: XRP ETF, SEC approval, 21Shares, Grayscale, crypto regulation, spot ETF, XRP price, and Federal Register. These terms reflect both user search intent and the central topics shaping discourse around digital asset innovation.
They appear naturally across discussions about market impact, regulatory timelines, and investment strategy—ensuring strong SEO alignment without compromising readability or credibility.
Frequently Asked Questions (FAQ)
What does SEC acknowledgment of an ETF mean?
Acknowledgment means the SEC has accepted the filing for formal review. It does not guarantee approval but confirms the agency will evaluate the application under federal securities law.
How many XRP ETF applications are currently under review?
At least five major applications are known to be in process: from Grayscale, 21Shares, Bitwise, Canary, and WisdomTree—all filed via Cboe BZX Exchange.
When will we know if the XRP ETF is approved?
A decision is expected within 240 days after the filing appears in the Federal Register—likely placing final rulings in Q4 2025.
Will an XRP ETF make XRP a security?
Not necessarily. ETF approval focuses on market structure and investor protection, not reclassifying the underlying asset. Previous court rulings have already indicated XRP isn't a security in retail contexts.
Can I invest in XRP through existing crypto platforms?
Yes. While waiting for ETF approval, investors can buy and trade XRP on regulated exchanges like OKX, Kraken, and Coinbase—subject to regional availability.
How might an approved XRP ETF affect its price?
Historical precedent shows that ETF approvals often lead to sustained price increases due to inflows from institutional investors and enhanced market confidence.
This moment represents more than just regulatory progress—it signals growing integration between traditional finance and digital assets. As the SEC advances its evaluation of spot XRP ETFs, all eyes remain on Washington and Wall Street alike.