The U.S. Securities and Exchange Commission (SEC) has officially acknowledged the XRP exchange-traded fund (ETF) application submitted by asset manager 21Shares, marking a pivotal development in the long-anticipated approval process. This move brings the potential launch of a spot XRP ETF significantly closer to reality and has reignited investor confidence in the digital asset.
Just one day prior, the SEC also acknowledged Grayscale’s XRP ETF filing, signaling a shift in regulatory posture under the current leadership. The back-to-back recognitions suggest that the SEC is now engaging with these applications—unlike previous instances where similar proposals were ignored or dismissed outright.
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Understanding SEC Acknowledgment: What It Means for XRP ETFs
An SEC acknowledgment of a Form 19b-4 filing does not equate to approval. However, it is a critical procedural step that indicates the commission is actively reviewing the proposal rather than rejecting it at the outset. This contrasts sharply with earlier actions, such as when Solana-based ETF applications were effectively blocked after exchanges withdrew their filings due to lack of SEC engagement.
The acknowledgment triggers a formal review timeline. Once the filings are published in the Federal Register—which is expected within days—the SEC will have a 240-day period (approximately eight months) to issue a final decision on whether to approve or deny the XRP ETFs from 21Shares and Grayscale.
This window allows for public comment, regulatory analysis, and potential hearings. Market observers interpret this development as a green light for serious consideration, especially under Acting Chair Mark Uyeda, whose tenure has shown more openness to crypto innovation compared to previous leadership.
Currently, there are five active XRP ETF applications under review. With Cboe BZX Exchange having filed 19b-4 forms for products proposed by Bitwise, Canary, 21Shares, WisdomTree, and Grayscale, the recent acknowledgment of two paves the way for similar treatment of the remaining three.
Analysts anticipate that the SEC may acknowledge the other filings within the coming week, setting up a synchronized review process that could culminate in a decision during Q4 2025.
The Road to Approval: Regulatory Hurdles and Market Readiness
While optimism is growing, several hurdles remain before an XRP ETF can launch. The SEC must be satisfied that the underlying market for XRP is resistant to manipulation and provides sufficient transparency—key criteria for any spot commodity ETF.
XRP has faced regulatory scrutiny since the December 2020 lawsuit between Ripple Labs and the SEC. However, recent court rulings have clarified aspects of XRP’s status, particularly distinguishing it from securities when sold to retail investors. These legal developments strengthen the case for an ETF by supporting claims of market maturity and decentralization.
Moreover, major financial institutions and custodians are increasingly integrating digital assets into their infrastructure. This growing institutional adoption enhances the viability of an XRP ETF, aligning it with existing spot Bitcoin and Ethereum ETFs already trading in U.S. markets.
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XRP Price Surge Reflects Market Sentiment
Unsurprisingly, the market has responded positively to the regulatory progress. XRP’s price surged 17% over the past week, with an 8% gain recorded in just 24 hours following the 21Shares acknowledgment. As of today, XRP is trading at $2.76—a notable increase amid broader market stability.
This rally underscores investor sentiment that a spot XRP ETF is no longer speculative but within reach. Historical patterns show that similar regulatory milestones for Bitcoin and Ethereum preceded significant price appreciation ahead of ETF approvals.
Volume and on-chain activity have also increased, indicating renewed interest from both retail and institutional traders. Social media mentions, exchange inflows, and derivatives positioning all point toward growing bullish momentum.
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Frequently Asked Questions (FAQ)
Q: Does SEC acknowledgment mean the XRP ETF is approved?
A: No. Acknowledgment means the SEC has accepted the filing for review. It is not a guarantee of approval but confirms that the agency is actively considering the application.
Q: When will we know if the XRP ETF gets approved?
A: The 240-day review clock starts once the filing appears in the Federal Register. Assuming publication occurs soon, a final decision could come by Q4 2025.
Q: How many XRP ETF applications are currently under review?
A: There are five active filings—submitted by Grayscale, 21Shares, Bitwise, Canary, and WisdomTree—each using Cboe BZX as the exchange sponsor.
Q: Why is a spot XRP ETF important?
A: A spot ETF would allow investors to gain exposure to real-time XRP prices without holding the asset directly. It brings legitimacy, liquidity, and accessibility to mainstream markets.
Q: Could other regulators block an XRP ETF even if the SEC approves it?
A: While possible, it's unlikely. The SEC is the primary regulator for securities and exchange-traded products in the U.S., so its decision carries decisive weight.
Q: How has XRP’s price reacted to recent news?
A: XRP has risen 17% weekly and gained 8% in 24 hours following the SEC’s acknowledgment of the 21Shares and Grayscale filings, reflecting strong market optimism.
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Looking Ahead: Implications for Crypto Markets
The acknowledgment of multiple XRP ETF applications represents more than just good news for Ripple holders—it signals broader regulatory evolution in the U.S. crypto landscape. If approved, an XRP ETF would join a growing list of regulated digital asset products, further legitimizing blockchain-based finance.
Such approval could also encourage filings for other altcoin ETFs, including Cardano, Solana, or Polkadot, provided they meet disclosure and market integrity standards. The ripple effect—pun intended—could accelerate product innovation across exchanges, asset managers, and custodial platforms.
For investors, this moment underscores the importance of staying informed about regulatory developments. While price movements can be volatile, structural shifts like ETF approvals often lead to sustained growth phases driven by institutional capital inflows.
As we move toward potential decisions in late 2025, all eyes will remain on Washington—and on Wall Street—for signs of what’s next in the evolution of digital asset investing.