Key takeout
- After a 240-day review process, the SEC will determine the Grayscale XRP ETF by October 18, 2025.
- ETF conversion faces hurdles due to XRP's legal status and SEC's careful approach to AltCoin ETFs.
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The Securities and Exchange Commission has decided on the XRP ETF proposed by Grayscale by October 18, 2025, and will follow the official mail filed today in the Federal Register.
馃毃new: @grayscale's $ xrp The ETF (19b-4 filing) has been officially posted to the Federal Register.
This is all about the clock starting now @secgov Be involved, approve or reject on or before October 18th. pic.twitter.com/dhmsvocsxf
– Eleanorterrett (@Eleanorterrett) February 20, 2025
This post will launch a 240-day review timeline, during which the SEC must approve, reject or extend the app's evaluation.
The process began with the SEC's approval of the February 14th filing.
The regulatory review includes a 21-day public comment period when stakeholders submit feedback on the proposal. Following this, the SEC will evaluate the comments and conduct the analysis within the required timeline.
As part of the review, the SEC will assess securities law compliance, assess market integrity, identify potential operating risks, and examine custody arrangements and investor protections.
Applications face several regulatory hurdles.
XRP's legal status is under scrutiny by continuing lawsuits between Ripple Labs and the SEC over whether XRP constitutes security.
Furthermore, the SEC has shown greater attention to Altcoin ETFs compared to Bitcoin ETFs, citing an increased risk of market manipulation.
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