SEC received the XRP ETF application for review
The United States of the United States (SEC) announced on Thursday that the New York Stock Exchange (NYSE) and asset management company Grayscale has accepted the application for XRP (ETF).
This development came at a time when SEC’s decisions on crypto currencies and digital assets became important.
The SEC has given him 240 days to evaluate the application. This refers to the maximum time set to decide whether the SEC will approve an ETF that will follow the price of XRP.
The SEC had previously accepted a few crypto -oriented ETF applications. These applications include Solana (left), Litecoin (LTC) and Dogecoin (Doge).
However, the application for the XRP is particularly remarkable because the SEC was looking for a decision on whether the XRP was accepted as securities in 2020 against Ripple.
The SEC accuses Ripple of Ripple of collecting Funds by selling XRP indifferently by selling securities. However, Ripple won a partial victory in August 2023 that the XRP was not considered as securities in the second -hand market. This case shapes the SEC’s approach to regulations and crypto currencies.
Despite the case against Ripple, the ETF application for the XRP was adopted by the commission. The fact that SEC accepts such an application despite the ongoing case against Ripple has a great meaning in the crypto industry.
At the end of 2023, the SEC applied to appeal at the end of the year, demanding that Ripple’s selling XRP was appropriate for the American Supreme Court’s Howy Test. The Howy test is a priority test used to determine whether an asset is accepted as securities.
Evaluating the developments related to the ETF application, ETF Store President Nate Gerraci said that this step gave a big message, given that the SEC could reject the application. This development, which is a turning point in crypto money markets, gives an important clue about the future of XRP.
On the other hand, Bloomberg’s ETF analysts James Seyffart and Eric Balchunas predict that the probability of approval of XRP ETF by the end of 2025 is around 65 %. Seyffart and Balchunas foresee 90 %for Litecoin and 75 %for Dogecoin.
On the other hand, the approval of the XRP ETF may reinforce the confidence in the XRP in the market, as well as in general crypto currency markets. A Potential ETF of XRP can be an important tool for major corporate investors.
The fact that the SEC will evaluate this application also points to a new era in order to regulate crypto currencies. In October, it will decide on all applications for crypto assets, including SEC, XRP.
This can offer a clearer understanding of how the SEC will approach the crypto world and which digital assets will be considered in the future.
