XRP saw a 5% price increase following a pivotal announcement by the U.S. Securities and Exchange Commission (SEC). The regulatory agency formally acknowledged Grayscale Investments’ 19b-4 filing to convert its XRP Trust into a spot exchange-traded fund (ETF). This move, widely seen as a significant step in the approval process, has sent waves through the crypto market.
What Does the SEC’s Acknowledgment Mean?
While the SEC’s acknowledgment does not equate to approval, it marks the beginning of a structured review process. This includes public commentary, regulatory scrutiny, and several decision-making rounds before a final ruling. Bloomberg ETF analyst James Seyffart confirmed the news, stating, “There it is—the SEC just acknowledged Grayscale & NYSE’s 19b-4 filing to list an XRP ETF. This was expected, but it officially means the clock will start soon for this and Dogecoin.”
Ripple’s Legal Battle and SEC’s Changing Stance
One of the most striking aspects of this acknowledgment is the broader implications for Ripple, the company behind XRP. The SEC has been locked in a long-running legal dispute with Ripple, alleging that XRP constitutes an unregistered security. The decision to engage with Grayscale’s ETF filing, rather than outright rejecting it, has been viewed by some as an indication that the SEC may be softening its stance on XRP.
Nate Geraci, President of the ETF Store, noted the significance of this move: “The SEC acknowledging an XRP ETF while simultaneously being in litigation with Ripple is huge. They could have easily ignored or rejected it.” Some analysts speculate that this could be a precursor to a potential settlement or shift in the SEC’s regulatory approach toward XRP.
Technical Analysis – What’s Next for XRP?
Following the announcement, XRP’s price briefly spiked above key resistance levels but failed to sustain its upward momentum. The token was rejected at the 0.5 Fibonacci retracement level near $2.58. For a sustained rally, bulls will need to push XRP above $2.77, which serves as the next significant resistance level. If this happens, the token could potentially retest its January high of $3.40.
Investment Implications and Market Sentiment
With the SEC formally engaging with the ETF filing, the market sentiment around XRP appears to be shifting. The acknowledgment has fueled speculation about institutional adoption and potential regulatory clarity. However, traders should remain cautious, as ETF approvals are a complex process, and there is no guarantee of a positive outcome.
As always, this article does not constitute investment advice. Crypto markets remain highly volatile, and investors should conduct thorough research before making any decisions.
