The US SEC will announce its decision on six spot XRP ETFs from Oct. 18 to Oct. 24. The six ETF applicants are Grayscale, 21Shares, Bitwise, CanaryCapital, CoinShares, and WisdomTree. If approved, it will mark the first instance of a spot XRP ETF in the US. Let’s discuss what investors and market participants can expect.
Will The SEC Approve XRP ETFs This Month?
The SEC rolled out new generic listing standards for commodity-based trust shares on Sept. 17. The move made the approval process easier to help “foster innovation.” The move aligns with the SEC’s pro-crypto stance after President Trump took office.
There is a very high chance that the SEC will approve at least one XRP ETF this year. SEC chair Paul Atkins has said that he is determined to propel the crypto industry in the US. President Trump has also said that he wants to make the US a global crypto hub. XRP, being a US-based crypto project, could benefit from the current administration’s pro-US outlook. Ripple CEO Brad Garlinghouse also had dinner with President Trump earlier this year, leading to further buzz about the possibility of an XRP ETF approval from the SEC.
Also Read: XRP Targets $6.20 Price Despite Recent Correction: Analyst
An ETF approval could lead to a massive inflow of institutional money for XRP. Bitcoin (BTC) and Ethereum (ETH) have hit new all-time highs thanks to consistent ETF inflows. XRP’s price could also follow a similar pattern, following an ETF approval from the SEC.
However, there is always a chance that the SEC will postpone its decision or deny approval altogether. Such a development could present challenges to XRP’s price. Moreover, the crypto market is still quite fragile. Macroeconomic conditions are yet to improve. An ETF approval alone may not lead to a price rally for XRP.
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