21-2-2025 – The Securities and Exchange Commission (SEC) has established 18 October 2025 as the deadline for reaching a verdict on Grayscale’s proposed XRP exchange-traded fund (ETF), following the proposal’s formal publication in the Federal Register.
The regulatory body now faces a 240-day assessment window to thoroughly evaluate the application, which was initially acknowledged by the SEC on 14 February. During this period, the Commission must either greenlight the proposal, reject it, or seek an extension for further deliberation.
A crucial phase of the review process includes a 21-day window for public commentary, enabling market participants, industry experts, and other stakeholders to voice their perspectives on the proposed investment vehicle. The SEC will subsequently analyse these submissions as part of its comprehensive evaluation.
The Commission’s assessment will focus on several key areas, including adherence to securities regulations, market integrity safeguards, potential manipulation risks, and the robustness of custody arrangements and investor protection measures.
However, the path to approval appears fraught with regulatory challenges. A primary concern centres on XRP’s regulatory classification, which remains contentious due to ongoing legal proceedings between Ripple Labs and the SEC regarding the token’s status as a security.
Industry observers note that the SEC has historically adopted a more conservative stance towards ETFs based on alternative cryptocurrencies compared to Bitcoin-based products. The Commission has repeatedly expressed concerns about heightened market manipulation risks associated with these alternative digital assets.
🚨NEW: @Grayscale’s $XRP ETF (19b-4 filing) has officially been posted to the Federal Register.
All this means is that the clock starts now for the @SECGov to engage and either approve or deny on or before October 18. pic.twitter.com/dhMSvOcSXF
— Eleanor Terrett (@EleanorTerrett) February 20, 2025
