US SEC Acknowledged Grayscale’s XRP ETF Filing

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As a seasoned crypto investor with a decade-long journey through the digital asset landscape, I can’t help but feel a sense of cautious optimism upon hearing about the SEC’s acknowledgment of the Grayscale XRP ETF filing. My experience has taught me that patience is key when it comes to regulatory approvals, especially in the crypto world.

The Securities and Exchange Commission (SEC) has officially recognized a filing for an Exchange Traded Fund (ETF) tied to XRP. As stated by Nate Geraci, President of the ETF Store, this is the application submitted by Grayscale Investments, a well-known asset management firm. The fund in question, Grayscale Digital Large Cap Fund (GDLC), was filed for conversion into an ETF.

Will the SEC Approve XRP ETF Products?

This investment fund, known as GDLC, offers a diverse portfolio of assets focusing on several cryptocurrencies. Investors can gain exposure to digital currencies such as Ripple‘s XRP, Bitcoin (BTC), Ethereum (ETH), Avalanche (AVAX), and Solana (SOL). Notably, Bitcoin constitutes the largest portion (77%) of the fund’s total assets under management.

After the SEC officially acknowledged the filing for an XRP-based ETF, they are inviting public opinion. This recent action does not necessarily imply that the SEC will make a decision about the offering in the near future. Cryptocurrency and ETF analysts remain optimistic about the possibility of an XRP ETF being approved by the regulatory body soon.

As a researcher, I’m sharing my interpretation of recent developments within the cryptocurrency realm. Brad Garlinghouse, CEO of Ripple, expresses a strong conviction that an XRP Exchange Traded Fund (ETF) is imminent, bolstered by the approval of Bitcoin and Ethereum ETFs in the U.S. This optimism suggests a positive outlook on Ripple’s prospect of overcoming regulatory hurdles in the ongoing legal disputes surrounding its blockchain payment firm.

According to Eric Balchunas, a senior analyst at Bloomberg ETF, he believes that a combination of cryptocurrency ETFs with less liquid assets might gain the Securities and Exchange Commission’s approval. This could give Grayscale an advantage over other asset managers such as Bitwise and Canary Capital, who have already submitted their XRP ETF applications.

If given the green light, a large-cap ETF could potentially experience a surge similar to that of Bitcoin ETFs, which are experiencing significant growth in the market right now. Notably, Bitcoin ETFs are receiving massive influxes of funds, with BlackRock being one of the major issuers. However, it took approximately ten years for the SEC to approve these products, so potential XRP ETF issuers may need to show considerable patience in securing the SEC’s approval.

Can Bitwise and Canary Capital Filing Make the Difference?

In the early days of October, Bitwise Asset Management filed their application for an XRP Exchange Traded Fund (ETF) on the Division of Corporations website. Officially confirming the legitimacy of their application was crucial to address the controversy surrounding a previously reported XRP ETF linked to BlackRock, which surfaced in November 2023.

A week after Canary Capital submitted an application, they followed with another one pertaining to the same product. This product aims to provide institutional investors with a regulated avenue for crypto investments. As per their filing, the Canary XRP ETF would mirror the price of XRP by referencing the Chicago Mercantile Exchange (CME) CF Ripple index, and it would steer clear of derivative products for tracking purposes.

A representative from the company commented, “We’re observing positive trends in the regulatory landscape becoming more advanced, alongside a rising interest among investors for sophisticated ways to invest in cryptocurrencies beyond Bitcoin and Ethereum. This interest particularly lies in gaining access to high-quality blockchain solutions and their associated tokens like XRP.

The SEC has yet to officially acknowledge any of these two first XRP ETFs as of this writing.

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2024-10-31 13:09