Financial Insights That Matter
- The SEC acknowledged Grayscale’s filing to convert its XRP Trust to an ETF.
- XRP ETFs could be approved considering the new SEC administration’s regulatory reforms.
- XRP could rally to $3.15 if it validates a rounded bottom pattern and its technical indicators flip to bullish momentum.
Ripple’s XRP is up 4% in the early hours of Friday following the Securities and Exchange Commission (SEC) acknowledgment of Grayscale’s 19b-4 filing to convert its XRP Trust to an ETF.
SEC acknowledges Grayscale’s XRP ETF filing
The SEC acknowledged the New York Stock Exchange (NYSE) 19b-4 filing for Grayscale to convert its XRP Trust into an ETF.
While acknowledging ETF filings don’t guarantee their approval, it shows that the SEC is open to the possibility of considering the option.
Next, the SEC is expected to acknowledge XRP ETF filings from other issuers, including Bitwise, Canary Capital, WisdomTree and 21Shares. Once the products get to the SEC’s federal register, a 240-day window opens for the agency to decide whether or not to approve the ETFs.
Bloomberg analyst Eric Balchunas and James Seyffart have predicted that XRP ETFs have a 65% chance of approval.
SO, for everyone asking what this means — the SEC has *acknowledged* @Grayscale/@NYSE’s 19b-4 application to convert its $XRP Trust into an ETF.
No, it doesn’t mean automatic approval and it doesn’t even guarantee the SEC will approve it down the line.
So why is it notable?… https://t.co/GICXgobYsZ
— Eleanor Terrett (@EleanorTerrett) February 13, 2025
The acknowledgment shows the difference between the current SEC administration and that of Gary Gensler, which refused to give room for other crypto ETFs apart from Bitcoin and Ethereum ETFs.
The Ripple vs SEC case remains critical amid the whole XRP ETF application process. For example, if the SEC approves an XRP ETF, it could signal the end of its case against Ripple.
Most crypto community members expect the SEC to abandon the appeal filed by the former administration against Judge Analisa Torres’ ruling in its case with Ripple, considering the latest regulatory reforms in the agency.
The SEC and Binance jointly requested a 60-day pause in their legal proceedings, citing the impact of the newly established SEC Crypto Task Force on regulatory developments. A similar agreement could occur in the SEC’s case against Ripple.
SEC Commissioner Hester Peirce, who heads the task force, previously stated that the unit will seek to clarify the status of certain cryptocurrencies under the new regulatory changes in the agency.
If XRP is classified among cryptocurrencies that are not considered securities, it could mark the end of its four-year case with the SEC. Such an outcome could boost adoption and attract inflows toward the remittance-based token.
XRP could rally to $3.15 if its technical indicators flip bullish
XRP saw $3.81 million in futures liquidations in the past 24 hours, per Coinglass data. The total amount of long and short liquidations accounted for $2.47 million and $1.35 million, respectively.
XRP is testing the $2.55 level, strengthened by the 14-day Exponential Moving Average (EMA) and 50-day Simple Moving Average (SMA).
If XRP overcomes this hurdle, reclaims the $2.72 level, and holds it as a support, it will validate a rounded bottom pattern that could send the remittance-based token toward the $3.15 level.
XRP/USDT daily chart
However, a strong rejection at $2.55 or $2.72 could see XRP finding support at $2.26.
The Relative Strength Index (RSI) line crossed above its moving average and is testing the neutral level line. A successful crossover will indicate a flip toward bullish momentum in the underlying market trend.
Meanwhile, the Moving Average Convergence Divergence (MACD) is testing its moving average red line while posting receding histogram bars. A successful crossover in this indicator will also signal a trend shift toward bullish momentum.
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14, 2023: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and had to pay a $125 million civil fine.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
#1a73e8;">Boost Your Financial Knowledge and Achieve Stability
Discover a growing online community dedicated to delivering financial news, tips, and strategies designed to help you manage money effectively, save smarter, and grow your investments with confidence.
#1a73e8;">Top Financial Tips for Saving and Investing
- Personal Finance Management: Master the art of budgeting, expense tracking, and building a strong financial foundation.
- Investment Opportunities: Stay updated on market trends, learn about stocks, and explore secure ways to grow your wealth.
- Expert Money-Saving Advice: Access proven techniques to reduce expenses and maximize your financial potential.