The cryptocurrency market witnessed a significant development as the SEC officially acknowledged Grayscale’s filing for an XRP ETF. This move triggered a 5% price surge in XRP and sparked discussions about potential implications for Ripple’s ongoing legal battle.
SEC’s Strategic Shift
The SEC’s acknowledgment of Grayscale’s 19b-4 filing marks a crucial milestone. This decision initiates a formal review process for converting the XRP Trust into a spot ETF. Bloomberg ETF analyst James Seyffart first reported this development on February 14th.
Market experts view this move as particularly significant. The SEC could have rejected the filing outright, given their ongoing litigation with Ripple. Instead, they chose to begin the review process.
Market Impact and Analysis
XRP responded positively to this news with a 5% price increase. The token faces resistance at $2.58, corresponding to the 0.5 Fibonacci level. A breakthrough could push prices toward $2.77, with potential for testing January’s high of $3.40.
Technical indicators suggest cautious optimism. The current price action shows strong support levels, but buyers need to maintain momentum above key resistance points.
Broader Implications
This development carries wider implications for the crypto industry. The SEC’s willingness to review an XRP ETF while maintaining legal action against Ripple suggests a possible shift in regulatory stance.
Industry experts, including Nate Geraci of the ETF Store, emphasize the significance of this move. It might indicate the SEC’s openness to settling the Ripple case or adopting a more flexible approach to crypto regulation.
What’s Next
The 240-day review window will begin once the filing appears in the federal register. Other firms, including Bitwise and 21Shares, await similar acknowledgments for their XRP ETF applications.
Market participants should monitor these developments closely. The outcome could significantly impact XRP’s price trajectory and the broader crypto market.
Tags: XRP ETF, SEC Regulation, Grayscale Investments, Crypto Markets, Digital Assets
Source: NewsbtcBTC