“Grayscale is looking to put out the first ETF that will hold spot bitcoin, ether, solana and XRP by converting GDLC. Is this poss? Maybe. Bc btc and ether make up over 90% of holdings (see below) and there’s wiggle room for ETF to have small portion of illiquid assets it may well be approved. If so, it would leapfrog everyone in the race to put out a combo crypto ETF. Discount shrank a bit so some ppl clearly think this could work.”
Balchunas added that Grayscale has progressed the process by filing a request to convert the Digital Large Cap Fund (GDLC) into a crypto-spot ETF.
Grayscale plans the spot ETF to comprise 90% BTC and ETH, with the remaining 10% comprised of XRP, SOL, and AVAX. An approval could expedite the launch of an XRP-spot ETF, potentially boosting buyer demand for XRP.
SEC Appeal Uncertainty Limits XRP Gains
Despite Wednesday’s gains, uncertainty about the SEC’s plans to appeal rulings in the SEC v Ripple case limited the upside. Investors await the SEC’s Form C filing, which will give more details on the SEC’s appeal strategy. An appeal against the Programmatic Sales of XRP ruling could significantly affect market sentiment.
XRP Price Outlook: XRP-spot ETFs and Appeal Strategies
XRP may break out from $0.55 and target $1.00 if the SEC does not challenge the Programmatic sales ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. XRP reacted to the ruling, surging to a July 2023 high of $0.9327.