SEC Expected to Review Grayscale’s XRP ETF Application Tomorrow – What to Expect from the Decision?

• SEC rules on Grayscale's XRP ETF.
• Court decision influences XRP classification.
• Litecoin could lead crypto ETF approvals.

The United States Securities and Exchange Commission (SEC) could announce approval for Grayscale's XRP ETF registration in partnership with NYSE Arca as early as Thursday, as reported by FOX Business journalist Eleanor Terrett.

This event is highly anticipated as it could shed light on the SEC's current stance on XRP, a cryptocurrency that has been the focus of a protracted legal dispute between Ripple and the SEC over its legal classification.

As per this very helpful table from @JSeyff and @EricBalchunas , we could see the @SECGov acknowledge @Grayscale $ Xrp spot ETF filing as early as Thursday (2/13), if indeed it chooses to acknowledge it. The SEC usually has around 15 days to acknowledge a 19b-4 filing and… https://t.co/cN9skLUSHq

—Eleanor Terrett (@EleanorTerrett) February 11, 2025

Last month, NYSE Arca, representing Grayscale, filed a Form 19b-4 with the SEC, requesting a rule change that would allow Grayscale’s XRP ETF shares to be listed and traded. The SEC traditionally has a timeframe of about 15 days to begin reviewing the application.

The move comes months after Grayscale launched its XRP trust product. At the time, the legal battle between the SEC and Ripple was about to conclude. An August ruling ruled that XRP tokens are not considered securities when sold to retail investors on exchanges, even though they are for institutional sales, resulting in a $125 million fine for Ripple.

The ruling was challenged by the SEC, taking the case to the U.S. Court of Appeals for the Second Circuit, with Ripple requesting until April 16, 2025, to file its response brief. These legal hurdles are seen as major obstacles to any attempt to launch an ETF tied to XRP, which is currently the fourth-largest cryptocurrency by market cap.

In addition to Grayscale, other fund managers such as WisdomTree, Bitwise, 21Shares and Canary Capital are also in the race to launch their own XRP ETFs, with the CBOE Exchange having filed forms 19b-4 last week for its proposed funds.