Key Takeaways:
- The SEC’s closed-door meeting on Thursday has fueled speculation of an imminent XRP ETF approval.
- Grayscale’s XRP ETF remains under review, with an official decision expected before October 2025.
- XRP price slumps despite growing optimism, with investors closely watching regulatory developments.
Anticipation Builds as SEC Schedules Key Meeting
The U.S. Securities and Exchange Commission (SEC) is set to hold a crucial closed-door meeting this Thursday, February 27, 2025, sparking speculation about the potential approval of an XRP exchange-traded fund (ETF). Investors and the crypto community are closely monitoring the meeting’s agenda, which notably includes discussions related to Bitwise’s XRP ETF proposal.
XRP ETF Approval: A Growing Possibility?
The SEC’s increasing engagement with XRP-related ETF applications has fueled optimism about a regulatory green light. In a recent filing, the SEC highlighted discussions around Cboe’s proposal to list and trade shares of the Bitwise XRP ETF under its commodity-based trust regulations. This acknowledgment signals a potential shift in the agency’s stance on XRP investment products.
Meanwhile, Grayscale Investments, which filed to convert its $16 million XRP Trust into an ETF in January 2025, is also under SEC review. The application was recently published in the Federal Register, initiating a 240-day review period. While an official decision on Grayscale’s ETF is expected by October 18, 2025, some analysts predict an early approval. However, the SEC has not explicitly listed Grayscale’s XRP ETF in the upcoming meeting agenda, leaving its immediate fate uncertain.
Could a Ripple Lawsuit Settlement Happen First?
Adding to the intrigue, speculation is growing around a potential settlement in the ongoing Ripple lawsuit before any ETF approval. Legal analysts suggest that a resolution in Ripple’s case could pave the way for regulatory clarity and a smoother path to ETF approval. Some experts believe the lawsuit could conclude before Ripple files its appellate brief on April 16, 2025.
Attorney Jeremy Hogan has suggested that regulatory approval of an XRP ETF is unlikely to come before the lawsuit reaches a settlement. Given the complexity of the case, any delays in the legal proceedings could further push back the SEC’s final decision on the ETF.
XRP Price Dips Despite Rising ETF Optimism
Despite increasing odds of ETF approval, XRP’s price has taken a hit. On the Polymarket prediction platform, the probability of an SEC-approved XRP ETF has surged to 80%. However, the token’s value has dropped to a 23-day low, currently trading at $2.21, reflecting a 10% daily decline. Over the past week, XRP has shed 15.7% of its value, while its monthly loss stands at 28.8%.
XRP, which recently held the third-largest market capitalization, has now slipped to fourth place with a market cap of $128 billion. Nevertheless, trading activity remains strong, with daily volume soaring by 215.8% to $12.64 billion, indicating heightened investor interest.
What’s Next?
As the SEC’s Thursday meeting approaches, the crypto industry eagerly awaits any announcements regarding XRP ETFs. Whether the SEC greenlights an ETF this week or delays its decision, the meeting’s outcome could have significant implications for XRP’s market trajectory and regulatory standing in the crypto landscape
