Six Major Asset Managers and Grayscale File Updated Spot XRP ETF Applications as Ripple Lawsuit Nears Resolution
- Six major firms filed updated XRP ETF proposals aiming to align with SEC requirements.
- XRP price surged as the Ripple lawsuit reached its final stage and market momentum increased.
- Grayscale joined the ETF race while BlackRock stayed out with no plans for an XRP fund.
Six prominent asset managers submitted updated filings to the Securities and Exchange Commission (SEC) on Friday. Bitwise, Canary Capital, CoinShares, Franklin Templeton, 21Shares, and WisdomTree amended their S-1 registration statements for spot XRP exchange-traded funds (ETFs).
Grayscale also filed a new S-1 registration for its planned Grayscale XRP Trust ETF. These simultaneous updates mark a coordinated effort by issuers aiming for eventual SEC approval.
The filings reflect ongoing communication between asset managers and regulators. They update fund structures to allow XRP or cash creations alongside cash or in-kind redemptions. This change contrasts with previous filings that allowed only cash transactions.
Analysts interpret this wave of filings as responses to recent SEC feedback. Although approval is not guaranteed, these actions indicate active regulatory engagement.
Market Reaction Boosted by Federal Reserve Signals
The filings were tied to hitting the markets at large following the Jackson Hole remarks of Federal Reserve Chair Jerome Powell. A possible rate cut in September was hinted at by Powell, strengthening the risk assets. Ethereum rose above its all-time high in November 2021 to above $4,887 and then fell back a little. XRP rose 10.50, buying at around $3.10 on Friday.
This price momentum also relates to legal developments in the Ripple lawsuit. Per the U.S. Court of Appeals to the Second Circuit, a double initiative to dismiss the appeals in the Ripple-SEC case was accepted. Such a breakthrough is an indicator that the drawn-out conflict has reached the final phase. Ripple’s legal team confirmed the case is moving towards resolution.
Legal Progress Advances XRP ETF Prospects
The Ripple-SEC lawsuit has influenced the regulatory outlook for XRP ETFs. The lawsuit’s advancing status appears to reduce uncertainty for asset managers filing ETF proposals. The dismissal of appeals strengthens the position of Ripple and XRP in regulatory eyes. This development likely encouraged the synchronized filings on Friday.
The legal clarity surrounding XRP contrasts with the SEC’s previous reluctance to approve spot XRP ETFs. The updated filings reflect asset managers’ attempts to meet regulatory concerns. Firms hope these revisions improve the chances of approval and provide a clearer framework for the ETFs’ operation.
Notable Absence of BlackRock and Market Positioning
While six firms advanced their XRP ETF proposals, BlackRock has not filed for an XRP fund. BlackRock manages the largest spot Ethereum and Bitcoin ETFs, but confirmed no plans for an XRP ETF. This absence highlights the cautious approach of some major players toward XRP.
At publication, XRP traded up about 7% to $3.08 amid the broader market rally. The cluster of filings signals strong interest in launching XRP spot ETFs once the SEC grants approval. The regulatory environment and legal progress remain key factors shaping these efforts.
