The XRP token experienced a modest 1.2% price increase during the late hours of Wednesday into early Thursday, fueled by growing market anticipation surrounding the U.S. Securities and Exchange Commission’s (SEC) potential acknowledgment of Grayscale’s proposal to convert its XRP Trust into a spot XRP exchange-traded fund (ETF). While the broader crypto market also saw gradual gains—with Bitcoin and Ethereum inching upward—sentiment around $XRP has been particularly charged due to recent regulatory developments.
Growing Momentum Around the $XRP ETF Filing
The conversation around a potential XRP ETF gained significant traction on social media platforms, especially X (formerly Twitter), where the hashtag "$XRP ETF" trended from Wednesday through Thursday morning. This surge in online engagement followed the SEC's recent pattern of acknowledging 19b-4 filings for other crypto-based ETFs, including those tied to Solana (SOL) and Litecoin (LTC).
At the center of this movement is the NYSE Arca’s formal application, filed on January 30, to transform Grayscale’s existing XRP Trust into a fully regulated ETF. Under standard SEC procedures, the commission has 15 days to acknowledge such filings after submission—unless it chooses to delay the process. Historically, delays were common under former Chair Gary Gensler’s leadership, often stretching review timelines for years.
However, with new leadership at the helm following Gensler’s resignation last month, there are signs that the SEC may be adopting a more responsive approach. The accelerated acknowledgments of recent crypto ETF proposals have sparked cautious optimism across the digital asset community.
It’s important to note that an SEC acknowledgment does not equate to approval. Rather, it marks the beginning of a structured regulatory process that includes a public comment period and further evaluation before any final decision is made. Still, acknowledgment is widely seen as a necessary first step—and one that could signal shifting regulatory winds.
Regulatory Clarity and Market Sentiment
One factor distinguishing XRP from other cryptocurrencies in the ETF conversation is its relative regulatory clarity. A pivotal 2023 court ruling determined that XRP is not a security when sold on public exchanges, offering some legal breathing room compared to other tokens facing uncertain classifications.
This distinction has become a rallying point for the so-called "XRP Army," who argue that the token’s compliance-friendly status makes it a strong candidate for ETF approval. As one user noted on X: “Unlike other cryptos with murky legal status, $XRP has clarity—let the market decide.”
Yet, the ruling wasn’t absolute. The court did not extend non-security status to institutional sales of XRP, meaning Ripple—the primary corporate holder of XRP—remains entangled in an ongoing lawsuit with the SEC over past offerings. Until this case reaches a formal conclusion, regulatory overhang persists.
Still, many investors believe that even a procedural acknowledgment of Grayscale’s filing could serve as a positive catalyst—both for market confidence and for Ripple’s legal trajectory.
Could Ripple’s Lawsuit Be Influenced by ETF Momentum?
As excitement builds around the ETF proposal, questions are emerging about whether this momentum could indirectly impact the SEC vs. Ripple litigation. While ETF approvals and enforcement actions are separate regulatory tracks, market analysts suggest that increased institutional interest in XRP may pressure the SEC to clarify its stance.
Some observers believe that if major financial institutions begin positioning themselves around XRP through ETF vehicles, the SEC may face growing scrutiny for maintaining an adversarial posture toward Ripple. The resolution of the lawsuit—long awaited by XRP holders—could unlock new levels of adoption and price appreciation.
“SEC be sayin’ they ‘acknowledged’ a filin’, but that don’t mean they approve it, savvy? Look how long I waited for that #Bitcoin ETF, arr! Brace yerself for delays and theatrics, matey! ⏳”
— Pearl Diver (@PearlDiver_O), February 12, 2025
This sentiment echoes past frustrations in the crypto space, particularly regarding the decade-long battle for spot Bitcoin ETF approval. While progress eventually came, it was slow and fraught with setbacks—raising concerns that XRP may face a similar path.
The BlackRock Factor: What’s Next for Institutional Adoption?
While Grayscale leads the charge, many in the community are watching another giant: BlackRock. As the issuer behind the dominant spot Bitcoin and Ethereum ETFs, BlackRock’s entry into the XRP space could be transformative.
Recent tweets from crypto influencers highlight this expectation:
“If BLACKROCK files for an $XRP ETF, THE PRICE OF XRP WILL NEVER BE THE SAME AGAIN.”
— TheXRPguy (@TheXRP_guy)“Once BlackRock sees the volume on ETF from Grayscale they will want a piece of $XRP.”
— TerraCasino_io (@TerraCasino_io)
Though BlackRock has not yet signaled interest in an XRP ETF, its track record suggests it closely monitors early-mover activity. Should Grayscale’s application gain traction, institutional demand could follow rapidly.
FAQ: Your Questions About the XRP ETF, Answered
Q: What does an SEC acknowledgment mean for the XRP ETF?
A: An acknowledgment simply confirms the SEC has received and logged the 19b-4 filing. It starts the official review clock but does not indicate approval or disapproval.
Q: How long does the SEC have to respond?
A: Typically 15 days from filing, though the agency can extend this period multiple times—a common practice in past crypto applications.
Q: Is XRP legally classified as a security?
A: In a 2023 ruling, a U.S. court found that XRP is not a security when sold on exchanges. However, institutional sales were not cleared, leaving partial regulatory ambiguity.
Q: Will a Grayscale XRP ETF guarantee price growth?
A: Not immediately. While ETFs can boost liquidity and institutional adoption, price impact depends on market sentiment, approval timelines, and macroeconomic factors.
Q: Why is BlackRock’s involvement so important?
A: BlackRock brings unmatched scale and credibility. Its entry into any crypto market often triggers widespread institutional follow-through and media attention.
Q: Could this affect Ripple’s ongoing lawsuit?
A: Indirectly, yes. Increased regulatory validation through ETF filings may strengthen Ripple’s position by reinforcing XRP’s status as a compliant digital asset.
The current momentum behind $XRP reflects more than just short-term speculation—it signals growing confidence in regulatory evolution and institutional adoption. While hurdles remain, including unresolved litigation and cautious SEC oversight, the path toward an XRP ETF appears more viable than ever.
With Grayscale leading the initiative and eyes turning toward potential BlackRock involvement, 2025 could mark a turning point for one of crypto’s most debated assets.
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