Key Insights
- Multiple asset managers recently updated their XRP ETF filings in response to the SEC’s feedback.
- Proposals include new structures with XRP or cash creations and in-kind redemptions.
- XRP price rallied to $3.08 as investors welcomed the filings.
Grayscale and several other asset managers recently updated their filings for XRP ETFs last week. Other involved asset managers in these filing updates include Bitwise, Canary, CoinShares, Franklin, 21Shares, and WisdomTree.
The updates addressed the U.S. Securities and Exchange Commission (SEC) requirements. While none of these filings have been approved, the changes are a step in the right direction.
Why These Asset Managers Updated Their Filings
According to analysts, so many filings being amended simultaneously was likely a response to direct feedback from the SEC. The regulator has constantly reiterated investor protection and liquidity issues in such products. They also likely demanded changes to fit the mould.
The updated filings will expand things like fund structures and more. Instead of limiting investors to cash creations and redemptions, the funds now allow both XRP and cash creations and in-kind redemptions. This gives institutions more flexibility and may reduce the fund’s operational friction.
Bloomberg ETF analyst James Seyffart described these filings as a “good sign” that issuers conform to regulators’ expectations. Nate Geraci, president of The ETF Store, noted that the coordinated timing made the updates even more notable.
XRP Price Reacts
The market responded quickly to the news. XRP rallied 7% on the day of the filings and reached $3.08. Traders saw the coordinated filings by these asset managers as legitimacy for XRP.
The optimism also came amid a more general rally across the crypto space. Bitcoin and Ethereum also saw gains. However, XRP’s movement stood out due to its direct link with the ETF filings. Still, BlackRock was notably absent from these filings.
BlackRock has surprisingly not joined the XRP race. This firm is the world’s largest ETF provider and the company behind the first spot Bitcoin and Ethereum ETFs.
Earlier in August, BlackRock confirmed that it had no plans to file for further ETFs. This decision surprised many market watchers, as the firm had tended to lead the charge in crypto ETFs in the past. Overall, the absence of BlackRock has not slowed the train down.
Grayscale Expands Crypto ETF Strategy
While advancing its XRP ETF, the asset manager is also working on a Dogecoin fund. It recently announced plans to rename its existing Dogecoin Trust into the Dogecoin Trust ETF. This ETF will have the ticker symbol “GDOG,” and if approved, would list on the NYSE Arca.
This move shows the asset manager’s push to offer regulated products across several cryptocurrencies. Competing firms like Bitwise and Rex-Osprey have also submitted applications for Dogecoin ETFs, which shows intense competition.
So far, XRP’s regulatory history has progressed more slowly than that of Bitcoin and Ethereum. The token only recently resolved an SEC lawsuit against Ripple. In this, regulators argued it was sold as an unregistered security.
Recent court rulings have improved XRP’s standing, but investors are still cautious. ETF issuers hope that the updated structures on custody and liquidity will be enough to win approval.
What Approval Could Mean for XRP
If the SEC approves one of these products, it would be a major win for the asset. Institutional investors who have avoided XRP due to regulatory uncertainty will be able to gain exposure through a regulated fund.
Analysts say that approval could attract billions in inflows and boost liquidity and legitimacy. Approval would also strengthen Ripple’s case that XRP has matured and opened the pathway for other altcoin ETFs.
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