based on materials from the site - By Yellow News
The SEC's reaction prompted four large investment firms to reconsider their applications for the Ripple XRP exchange-traded fund.
Several companies revisited their applications for the Ripple XRP exchange-traded fund after the U.S. Securities and Exchange Commission's reaction, which earlier this week postponed decisions on several proposals. These events coincided with significant progress in Ripple's legal proceedings against the SEC: the Second Circuit Court approved a joint motion to dismiss the lawsuit, which experts believe marks the final step toward resolving the case.
Major ETF issuers, including Bitwise, Canary, Coinshares, and Grayscale, updated their documents for the XRP ETF following the SEC's comments.
The Second Circuit Court approved a joint agreement to dismiss the lawsuit in Ripple's case against the SEC, which is likely to put an end to the years-long dispute.
The price of XRP rose from less than $2.80 to $3.10 following the legal proceedings, maintaining support above the $3.00 level.
The developments in filing for the ETF signal progress.
Bloomberg ETF analyst James Seyfert confirmed that several XRP ETF applicants updated their documents within days after the SEC's decision to postpone consideration. The quick response reflects the process that Bitcoin and Ethereum ETF issuers went through before their funds received regulatory approval.
Seyfert characterized the updates as 'almost certainly' a result of SEC feedback. He called these changes 'a good sign, but overall expected', drawing parallels to the iterative approval process that preceded the successful launches of cryptocurrency ETFs.
The applying companies — Bitwise, Canary Capital, Coinshares, and Grayscale — rapidly responded to regulatory inquiries. Fox Business correspondent Eleanor Terrett noted that the chosen timing is quite justified, given the deadline for final SEC decisions in October.
The legal ruling became a market catalyst.
The Second Circuit Court approved the joint motion by Ripple and the SEC to dismiss the case on Thursday, which lawyers believe marked the concluding stage of their prolonged dispute. The approval followed after the parties filed a motion to dismiss the case in August, after previous attempts that were initially rejected by Judge Torres.
The price of XRP reacted immediately to the developments. The cryptocurrency fell to a multi-week low below $2.80 and then soared to $3.10 within minutes after the announcement.
The rally was also driven by the overall market dynamics following Federal Reserve Chairman Jerome Powell's speech in Jackson Hole. Despite some correction from the peak, XRP continues to trade above $3.00, which serves as both support and resistance.
Exchange-Traded Funds (ETFs) are investment tools that track underlying assets when traded on traditional stock exchanges. Cryptocurrency ETFs allow investors to access digital assets without directly buying or storing the tokens themselves.
The SEC's approval process for cryptocurrency ETFs involves a thorough analysis of the fund's structure, storage mechanisms, and market oversight measures. Bitcoin ETFs received approval in January 2024, followed later that year by Ethereum ETFs.
XRP, the native token of the Ripple payment network, facilitates cross-border transactions and serves as a bridge in the company's payment solutions. The regulatory status of the token has played a key role in Ripple's legal battle with the SEC.
The simultaneous progress in XRP ETF applications and Ripple's lawsuit indicates potential clarity in cryptocurrency regulation issues. Market participants view these events as positive indicators for the institutional adoption prospects of XRP.
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