21Shares Nears XRP ETF Decision as SEC Weighs Approval
21Shares is approaching a potential launch point for an XRP exchange-traded fund (ETF) as the U.S. Securities and Exchange Commission (SEC) deliberates on its approval. The proposed ETF would track XRP, the native token of Ripple, and comes amid increased regulatory scrutiny around digital-asset products. Market observers expect the SEC decision to be pivotal: approval could open broader institutional access to XRP, increase liquidity and potentially raise XRP prices, while rejection or delay may sustain regulatory uncertainty and pressure on XRP markets. The development is part of a wider ETF trend that has seen spot and futures crypto ETFs draw strong institutional interest. Traders should watch SEC filings, comment deadlines, any litigation updates involving Ripple, and short-term liquidity flows around XRP trading pairs to anticipate volatility and positioning ahead of the regulator’s decision.
Neutral
The news is classified as neutral because it signals a potentially important regulatory milestone without providing a definitive outcome. Historically, regulatory approvals of spot crypto ETFs (notably Bitcoin) have been bullish for the underlying asset due to increased institutional access and inflows, while rejections or prolonged delays have created selling pressure and uncertainty. For XRP specifically, an SEC approval of an ETF would likely be bullish: it could unlock new demand, increase liquidity, and improve market sentiment. Conversely, a rejection or continued delays would likely be bearish or maintain muted demand. In the short term, traders can expect elevated volatility, widening spreads, and opportunistic positioning around news and filings. In the long term, the ruling will influence institutional participation and price discovery for XRP: approval supports structural demand and sustained inflows; denial perpetuates regulatory risk and constrains mainstream adoption. Monitor SEC timelines, legal developments in the Ripple case, ETF application amendments, and on-chain liquidity metrics to gauge impact.