The U.S. Securities and Exchange Commission (SEC) has officially approved the rule change requests from Cboe, Nasdaq, and NYSE, allowing Commodity-Based Trust Shares to be listed and traded under a standardized framework. This move establishes a General Listing Standard (GLS) for cryptocurrency spot ETFs, eliminating the need for prolonged individual approval processes. For XRP traders, this is another significant piece of favorable information following the legal victory, as it could accelerate the approval of multiple spot ETFs, including XRP, thereby bringing new price catalysts for the token and potentially pushing it to historic highs.
SEC Approves General Listing Standards: ETF Approvals Will Significantly Accelerate
The general listing standards (GLS) approved by the SEC cover cryptocurrency spot ETFs. Crucially, the GLS framework allows cryptocurrency ETFs that meet the established standards to be exempt from having to submit a separate 19-b form for approval by the exchange, a process that typically requires up to 240 days of review.
Market Reaction and Analyst Opinions
Matt Hougan, Chief Investment Officer of Bitwise Invest, commented on the potential impact of the approval, stating: “When the SEC established universal listing standards for traditional ETFs by passing the 'ETF Rule' at the end of 2019, the number of new ETFs launched each year surged from around 117 to about 370. If a universal listing standard for encryption currencies arrives this fall, a similar expansion is expected.”
Bloomberg Intelligence ETF analyst James Seyffart also expressed the same optimistic sentiment, stating: “The SEC has approved the universal listing standards for 'commodity-based trust shares' (i.e., encryption ETPs). This is the crypto ETP framework we have been waiting for. Get ready for the surge of spot encryption ETPs that are about to emerge in the coming weeks and months.”
GLS may accelerate the listing of the Grayscale Digital Large Cap ETF (GDLC) and the Bitwise 10 Crypto Index ETF (BITW). Both of these are multi-encryption ETFs that include XRP. The SEC had previously approved but then issued a stay order, delaying their listing.
XRP Spot ETF Dawn has Emerged: New Opportunities After Victory in Legal Battle
It is crucial that, given the final resolution of the SEC's case with Ripple, the SEC may also approve the pending applications for XRP Spot ETF.
In August this year, the U.S. Court of Appeals approved the joint motion to dismiss submitted by Ripple and the SEC, bringing an end to this protracted legal battle. This approval means that the SEC has officially abandoned its appeal against Judge Torres' ruling on the programmatic sales of XRP. Judge Torres ruled in 2023 that the programmatic sales of XRP do not satisfy the third prong of the Howey test, and therefore do not constitute a security.
Amicus curiae attorney John E. Deaton previously commented on the importance of this ruling for ETF issuers, stating: “Fast forward to today: the XRP Spot ETF is on the path to approval. The bottom line is: as Judge Torres ruled after citing the views of XRP holders who intervened as amici curiae in the case: 'XRP itself is not a security.' Without this ruling, these Spot ETFs may never see the light of day.”
Currently, a total of 11 issuers have submitted XRP ETF applications, covering pure Spot, leveraged, and futures. Among them, the Spot ETF applications of 7 issuers are awaiting a decision from the SEC. These issuers include 21Shares, Bitwise, Canary Capital, CoinShares, Franklin Templeton, Grayscale, and WisdomTree. Except for Franklin Templeton's final deadline of November 14, the final deadlines for the other applications are between October 18 and 25. The approval and listing of the XRP Spot ETF could become a catalyst for the price, pushing the Token to new heights.
Nate Geraci, the president of NovaDius Wealth Management, warned against underestimating the market demand for XRP Spot and Solana Spot ETFs, stating: “People are seriously underestimating the demand from investors for XRP Spot and SOL Spot ETFs, just as they initially underestimated the demand for Bitcoin and Ethereum Spot ETFs.”
Market and Technical Analysis: XRP's Bullish and Bearish Scenarios
REX-Osprey XRP ETF officially launched on Thursday, September 18, which may serve as a litmus test for the XRP Spot ETF market. The REX-Osprey XRP ETF (XRPR) employs a hybrid investment strategy, investing in XRP itself, XRP ETFs, and XRP derivatives.
CMC data shows that XRP is currently priced at 3.08 USD, with a 24-hour decline of 0.2%. The Token has outperformed the market (0.73%) and closed above the psychological level of 3 USD.
Traders are closely monitoring the following technical levels:
·Support levels: 3 dollars, 2.8 dollars, and 2.5 dollars.
·Resistance levels: $3.2, $3.335, and the historical high of $3.66.
In the short term, several key events may drive price movements:
·The launch of REX-Osprey XRP ETF and market demand.
·Spot ETF: The approval or delay of the XRP spot ETF application. The emergence of BlackRock iShares XRP Trust application may also become a price catalyst.
·The stance of blue-chip companies on XRP as a treasury reserve asset.
·Regulatory Milestone: Ripple's application for a U.S. chartered banking license, progress related to the market structure bill, and news related to the SWIFT system may further affect market demand.
bearish scenario
·The capital inflow of REX-Osprey XRP ETF is weak.
·SEC rejected the XRP Spot ETF application.
Legislative setbacks, such as challenges from Democratic lawmakers to market structure bills, or obstacles facing crypto-friendly regulation.
·Blue-chip companies avoid using XRP as treasury reserve assets.
·The Office of the Comptroller of the Currency (OCC) has delayed or denied Ripple's US charter banking license.
·SWIFT maintains its dominance in the global remittance field, restricting Ripple's market access.
·These bearish events may push XRP below $3, exposing $2.8 and even the next key support level of $2.5.
Bullish Scenario
·REX-Osprey XRP ETF report shows strong demand.
·BlackRock submitted an application for the iShares XRP Trust, and the SEC approved the XRP Spot ETF.
·Blue chip companies adopt XRP as treasury reserve assets, more payment platforms integrate Ripple technology.
·Ripple has obtained a charter bank license in the United States, and the Senate has passed the Market Structure Act.
·Ripple has taken over SWIFT's market share in the global remittance market.
·These events may push XRP towards $3.2. If it can sustain a breakthrough of $3.2, it may pave the way to reach $3.335. Breaking through $3.335 could then touch the historical record of $3.66.
Conclusion
The upcoming weeks are crucial for XRP traders. In addition to the launch of REX-Osprey, the approval of the XRP Spot ETF and the passage of the market structure bill in the Senate could drive the Token to break through the historical high of $3.66. However, regulatory setbacks and weak institutional demand could also pull the Token back below $3, exposing its support level at $2.8. Therefore, market and regulatory developments in the coming weeks will determine whether the Token will create new highs or face greater selling pressure.
