What you need to know:

• The SEC has recognized a filing for an XRP ETF from NYSE and Grayscale, initiating a 240-day review period.
• This marks the first SEC response to an XRP ETF application during its ongoing lawsuit against Ripple.
• Analysts from Bloomberg forecast a 65% probability of approval for the XRP ETF by 2025, with other crypto ETF decisions slated for October.

The Securities and Exchange Commission (SEC) has acknowledged a new filing for an exchange-traded fund (ETF) that is associated with the price of XRP. The SEC’s acceptance of the application signifies that it now has a maximum of 240 days to decide on the matter.

Previously, the SEC has responded to various crypto-focused ETF applications, such as those for Solana (SOL), Litecoin (LTC), and Dogecoin (DOGE). The latest acknowledgment is particularly noteworthy due to the ongoing lawsuit against Ripple, the issuer of XRP.

In December 2020, the SEC initiated legal action against Ripple for allegedly breaching U.S. securities laws by selling XRP as an unregistered security. Ripple experienced partial success in court in August 2023 when a federal judge ruled that XRP was not deemed a security when sold in secondary markets.

On January 15, a few days before Donald Trump took office, the SEC filed an appeal — contending that Ripple’s methodology for selling XRP satisfied the criteria of the Howey Test, a judicial standard used to identify securities.

“They could have easily rejected this filing,” commented Nate Geraci, President of the ETF Store. “A significant message in my view."

Recently, Bloomberg ETF analysts James Seyffart and Eric Balchunas predicted a 65% likelihood that the XRP ETF would receive approval by the close of 2025, ranking the LTC ETF at 90% likelihood for approval, followed by 75% for DOGE and 65% for SOL. All current ETF applications regarding these assets will receive verdicts in October.