The cryptos industry retains its breath in the face of still hesitant regulation. While the enthusiasm for the Crypto ETF grows, the Securities and Exchange Commission (SEC) of the United States has just postponed its decision at an important request: the conversion of the XRP Trust of Grayscale into Etf.
This postponement, announced on Tuesday, illustrates the increased regulatory difficulties surrounding these assets, even though the financial products linked to cryptos gain legitimacy with institutional investors. Between regulatory uncertainty and expansion strategies for major asset managers, the expectation is extended for supporters of an XRP ETF.
The dry extends its examination of the Grayscale ETF XRP
The American financial gendarme has chosen to exercise its right to postpone its decision at the request of Grayscale, which aims to transform its XRP Trust into a negotiated grant fund (ETF). In its press release, the agency indicates that it considers it “appropriate” to extend the examination period in order to assess the implications of this transformation in more detail.
The announcement immediately had an impact on the XRP course, which recorded a 1.2 % drop after reaching an intra -day peak of 2.2 dollars. This postponement is not an isolated case: the SEC has also rejected its decisions with regard to similar proposals, in particular those which target Dogecoin and Litecoin ETF.
The Battle of ETF XRP and the reluctance of the finance giants
If Grayscale is on the front line, other players also seek to position themselves on the ETF XRP market. The SEC must still rule on the requests filed by 21Shares and Canary Capital, which are awaiting a verdict in the coming weeks. Franklin Templeton, one of the heavyweights in asset management, also expressed his interest in an XRP ETF by the recent deposit of an official request.
On the other hand, giants such as BlackRock and Fidelity, yet already engaged in the Bitcoin and Ethereum ETF market, are held at a distance from ETF XRP. Blackrock had even dismissed the idea of investing in financial products related to alternative cryptos, which could indicate increased skepticism with regard to uncertain regulations and market prospects for XRP.
Uncertainty around the regulation of Crypto ETF in the United States continues to weigh on market players. Despite a measured optimism (Polymarket analysts estimate 75 % the chances of approval of an XRP ETF), caution remains in order.
The decision of the SEC could condition the evolution of the altcoin market, which would influence the price of the XRP, but also the attitude of institutional investors vis-à-vis alternative cryptos. This postponement once again underlines the prudence of the regulator in the face of an in full mutation sector, which is still trying to find a place alongside traditional financial assets.
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