The Securities and Exchange Commission (SEC) is expected to rule on multiple applications for spot XRP exchange-traded funds (ETFs). If approved, this regulatory decision could mark a major shift in how investors access XRP, potentially driving a price surge.
To this end, the SEC has until mid-October 2025 to approve or reject these ETF proposals. Notable filings include Grayscales application to convert its XRP Trust into a spot ETF and submissions from 21Shares and Bitwise. However, depending on the review process, a decision could come as early as mid-April 2025.
These applications have emerged despite the ongoing legal battle between the SEC and Ripple. Still, the XRP community remains optimistic, believing approval odds have improved under the cryptocurrency-friendly regulatory environment.
Interestingly, as reported by Finbold, Bloomberg ETF analysts James Seyffart and Eric Balchunas project a 65% chance of a spot XRP ETF being approved.
XRPs regulatory milestone
The ETF approval would serve as a key milestone for XRP, given that the SECs case against Ripple has previously weighed down the asset. As things stand, speculation is growing that the legal matter could be resolved soon.
With pro-crypto advocate Paul Atkins being nominated to lead the agency, the XRP community anticipates that he may push for a dismissal of the case or promote a settlement favorable to Ripple.
After the SEC abruptly withdrew its lawsuit against Coinbase, there is speculation that a similar outcome could be possible in its legal battle with Ripple. The SECs decision, filed with prejudice on February 21, 2025, ends a nearly two-year case accusing Coinbase of operating as an unregistered securities exchange.
XRP price analysis
XRP was trading at $2.58 by press time, down about 0.8% in the last 24 hours. On a weekly timeframe, the asset has plunged over 7%.
XRPs price is generally struggling alongside the broader cryptocurrency market, signaling possible sustained short-term bearishness as it trades below the 50-day simple moving average (SMA) of $2.68. However, the 200-day SMA at $1.43 suggests a long-term bullish outlook.