XRP ETF Filings: Key Insights on Their Impact in the Approval Race

Bloomberg analyst James Seyffart has shared insights regarding the XRP ETF amendment submissions and their potential implications for approval. These amendments emerged after the SEC postponed its decision on these funds until October, the final cutoff date.

Significance of the XRP ETF Amendment Submissions for Approval

In an X post, the Bloomberg analyst indicated that the XRP ETF amendments likely resulted from feedback provided by the SEC. He asserted that this was an encouraging development, even though it was largely anticipated. The Commission is recognized for offering insights on these funds during the assessment phase, akin to the Bitcoin and Ethereum ETFs.

Seyffart’s remarks followed the actions of issuers like Grayscale, Canary Capital, Franklin Templeton, 21Shares, Bitwise, and WisdomTree, who all submitted amended S-1s for their respective XRP ETF funds. Market analyst Nate Geraci also remarked on the submissions, highlighting that it was particularly significant for the issuers to file the amendments simultaneously. He further suggested that it represented a “very positive sign.”

It is important to mention that these amendments came immediately after the SEC postponed its ruling on these XRP ETFs. The Commission had a deadline this month to either accept or reject the applications but opted to prolong the evaluation period until the final deadline in October for these funds.

Bloomberg analysts James Seyffart and Eric Balchunas estimate a 95% probability that the SEC will approve these funds this year. Polymarket data indicates an 81% likelihood of approval this year. Optimism remains high, particularly since the SEC and Ripple have resolved their protracted legal dispute.

XRP ETF Submissions Would Likely Not Have Occurred Without Judge Torres’ Decision

In an X post, pro-XRP attorney John Deaton remarked that the XRP ETF submissions would probably never have transpired without Judge Analisa Torres’ ruling declaring that XRP is not a security. This acknowledgment came as he reflected on how the SEC previously argued that XRP was unlawful and represented Ripple’s efforts, thereby categorizing all tokens as unregistered securities.

Deaton pointed out that fast forward to today, XRP ETFs are on the verge of approval, with a final deadline approaching for Grayscale’s submission on October 18, which might be when potential approval occurs. Based on the history with the Bitcoin ETFs, the legal expert suggested that the optimal scenario for these XRP ETFs would result in trading commencing within one to five days post-approval.

In contrast, if the XRP ETFs were to mirror the Ethereum ETFs approval journey, it would imply that they wouldn’t start trading for roughly two months. The SEC had initially approved the 19b-4s for the Ethereum ETFs, but delayed the approval of the S-1 filings, citing the need for further disclosures at that time.

At the moment of writing, the price of XRP is trading around $3, down nearly 2% over the past 24 hours, as per data from CoinMarketCap.

Featured image from Getty Images, chart from Tradingview.com

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