Ripple (XRP) Spot ETF Timing: SEC To Announce Decisions in January

Key Takeaways

• The SEC’s decision on spot XRP ETF applications is approaching, with anticipation building among asset managers.
• Four asset managers, including Bitwise and WisdomTree, have filed for spot XRP ETFs.
• Optimism is high within the crypto community, fueled by the incoming pro-crypto Trump administration.

As Donald Trump prepares to assume office on Jan. 20, bringing with him a pro-crypto administration, the crypto community is buzzing with anticipation.

The industry is hopeful that the new leadership will pave the way for a surge in crypto-based investment products in the near future.

Amid a flood of crypto exchange-traded funds (ETFs) proposals, one token is capturing the spotlight: XRP.

XRP has long been embroiled in legal battles with the Securities and Exchange Commission (SEC), and many are eager to see how the new administration’s policies might influence its fate.

XRP ETFs?

Speculation about the approval of a spot XRP ETF has been buzzing across crypto social media following a high-profile dinner meeting  between Ripple CEO Brad Garlinghouse and President-elect Donald Trump earlier this week.

Many industry watchers see Ripple (XRP) as a strong contender for ETF approval, with Garlinghouse himself hinting that XRP could be next in line.

However, many regulatory hurdles remain.

Ongoing legal battles with the SEC over the classification of certain crypto assets could delay the launch of a spot XRP ETF.

Despite this, Ripple President Monica Long has acknowledged  the growing interest in crypto ETFs, subtly suggesting that XRP may be among the next wave of approvals.

The SEC Deadline Nears

Four firms—WisdomTree, Bitwise, 21Shares, and Canary Capital—have submitted their spot XRP ETF applications at present.

Under regulatory requirements, the SEC has 45 days to make an initial decision after accepting applications.

WisdomTree’s application, filed on Dec. 2, puts the SEC on a tight schedule, with a response due by Jan. 16—just a day after the deadline for the SEC’s appeal in the ongoing Ripple lawsuit on Jan. 15.

Launch Conditions

While the prospect of a pro-crypto regulator offers hope to the industry, it doesn’t guarantee a smooth approval process for every crypto ETF application.

For a spot XRP ETF—or even a Solana (SOL) ETF—to gain approval, the U.S. government must first establish clear regulations defining what constitutes a security and how crypto tokens are classified as assets.

Skepticism surrounded the approval of a spot Ethereum ETF, but its eventual green light has encouraged asset managers to file for a range of altcoin-based ETFs. However, the path for XRP is more complicated.

Several securities lawsuits are currently pending against major crypto exchanges, with tokens like XRP and SOL cited as potential securities.

The SEC would need to resolve these legal disputes and clarify its stance before any regulatory approval for an XRP ETF could move forward.

Eyes on XRP

XRP finally broke out in 2024, surging fivefold over the past year. The price climbed from $0.52 to a multi-year high of over $2.90 and is currently trading at $2.32.

With the introduction of a native stablecoin and the anticipated approval of a spot XRP ETF in 2025, the stage seems set for XRP to challenge its all-time high of $3.12, which was last reached in 2017.

Market analysts and XRP enthusiasts are optimistic, predicting that the token could surpass $5 in the upcoming bull cycle, fueled by the expected ETF approval.

XRP ETF Filings

Bitwise Leads the Charge

Bitwise Asset Management was the first to file for a spot XRP ETF, making its move in October 2024.

The firm submitted an S-1 registration statement to the SEC just a day after registering an XRP trust with Delaware’s Department of State. The filing invoked a sense of euphoria among the XRP community, given that XRP was delisted from all U.S. exchanges three years ago.

Canary Capital Joins ETF Race

Canary Capital, a crypto investment firm led by former Valkyrie CIO Steven McClurg, filed  for a spot XRP ETF on Oct. 8.

This filing was the second application for an XRP ETF in the U.S., following Bitwise’s earlier submission.

21Shares Applies For XRP ETF

WisdomTree Files S-1 for XRP ETF

WisdomTree filed its S-1 registration  for a spot XRP ETF on Dec. 2, 2024.

If approved, this would mark WisdomTree’s second crypto ETF.

The filing reveals the asset manager’s plans to list the spot XRP ETF on the Cboe BZX Exchange.

However, unlike other issuers that typically include key details like custodians and ticker symbols, WisdomTree’s S-1 leaves these points unaddressed.

WisdomTree has already found success in the crypto ETF space, with its Bitcoin ETF, BTCW, reporting net inflows of $217 million. 

Is Blackrock Going To Get Involved?

Garlinghouse has hinted  at a possible partnership with BlackRock to launch an XRP ETF in the U.S.

“We think it makes sense for the XRP community overall,” Garlinghouse said, suggesting the collaboration could benefit both XRP holders and the broader crypto ecosystem.

If it materializes, the ETF could provide institutional investors with easier access to XRP, potentially increasing its legitimacy and market presence.

A tie-up with BlackRock, one of the world’s largest asset managers, would signal a growing acceptance of digital assets within traditional finance.

However, nearly six months after the statement, BlackRock has yet to file an application for a spot XRP ETF.

With additional reporting from Insha Zia and Prashant Jha.