Multiple companies have revised their Ripple XRP exchange-traded fund applications following feedback from the U.S. Securities and Exchange Commission, which delayed decisions on several proposals earlier this week. The developments coincide with significant progress in Ripple's legal battle against the SEC, as the Second Circuit Court approved a joint dismissal stipulation that experts believe marks the final step toward case resolution.
What to Know:
- Major ETF issuers including Bitwise, Canary, Coinshares, and Grayscale have updated their XRP ETF filings after SEC feedback
- The Second Circuit Court approved a joint dismissal stipulation in Ripple's legal case against the SEC, likely concluding the multi-year dispute
- XRP's price surged from under $2.80 to $3.10 following the legal developments, maintaining support above the $3.00 level
ETF Filing Developments Signal Progress
Bloomberg ETF analyst James Seyffart confirmed that several XRP ETF applicants updated their filings within days of the SEC's decision to delay approval considerations. The swift response mirrors the process experienced by Bitcoin and Ethereum ETF issuers before their funds received regulatory approval.
Seyffart characterized the updates as "almost certainly" resulting from SEC feedback. He described the revisions as a "good sign, but also mostly expected," drawing parallels to the iterative approval process that preceded successful cryptocurrency ETF launches.
The companies behind the applications—Bitwise, Canary Capital, Coinshares, and Grayscale—moved quickly to address regulatory concerns. Fox Business correspondent Eleanor Terrett noted the timing makes sense given the SEC's October deadline for final decisions.
Legal Resolution Provides Market Catalyst
The Second Circuit Court of Appeals approved Ripple and the SEC's joint stipulation of dismissal on Thursday, representing what legal experts consider the concluding step in their protracted dispute. The approval came after the parties filed their dismissal request in August, following previous attempts that faced initial rejection from Judge Torres.
XRP's price responded immediately to the legal development. The cryptocurrency had declined to a multi-week low below $2.80 before surging to $3.10 within minutes of the announcement.
The rally also benefited from broader market momentum following Federal Reserve Chair Jerome Powell's Jackson Hole speech. Despite some retracement from the peak, XRP maintains trading above $3.00, a level that has served as both support and resistance.
Understanding Cryptocurrency ETFs
Exchange-traded funds represent investment vehicles that track underlying assets while trading on traditional stock exchanges. Cryptocurrency ETFs allow investors to gain exposure to digital assets without directly purchasing or storing the tokens themselves.
The SEC's approval process for cryptocurrency ETFs involves extensive review of fund structure, custody arrangements, and market surveillance measures. Bitcoin ETFs received approval in January 2024, followed by Ethereum ETFs later that year.
XRP, the native token of the Ripple payment network, facilitates cross-border transactions and serves as a bridge currency in the company's payment solutions. The token's regulatory status has been central to Ripple's legal dispute with the SEC.
Closing Thoughts
The simultaneous progress in XRP ETF applications and Ripple's legal case suggests potential regulatory clarity for the cryptocurrency. Market participants view these developments as positive indicators for XRP's institutional adoption prospects.