SEC could announce XRP ETF approval on February 13

The U.S. Securities and Exchange Commission is expected to acknowledge Grayscale Investments’ application to convert its $XRP Trust into a spot exchange-traded fund as early as Thursday, Feb. 13.

This expectation stems from the SEC’s typical 15-day window to respond to a 19b-4 filing, which Grayscale submitted on Jan. 30, according to Eleanor Terrett.

Grayscale’s initiative aims to transform its existing $XRP Trust, which currently manages approximately $16.1 million in assets, into an ETF listed on the New York Stock Exchange.

The move would allow investors to trade shares of the fund, providing exposure to $XRP ($XRP) without the complexities of direct cryptocurrency ownership.

The SEC’s forthcoming decision could offer significant insight into the agency’s current stance on $XRP, particularly given its historical legal disputes with Ripple, the company behind $XRP.

A federal court ruling previously determined that $XRP is not a security when traded on secondary markets, a decision that may influence the SEC’s approach to related financial products.

High likelihood of approval

Polymarket bettors estimate an 81% probability of the SEC will approve a spot $XRP ETF this year. The outcome of Ripple’s ongoing legal battle with the SEC remains a pivotal factor in this assessment.

$XRP’s price has dropped nearly 30% from its January peak, entering a bear market as daily trading volume and futures open interest decline.