“Grayscale is considering launching the first ETF that will hold spot Bitcoin, Ether, Solana, and XRP by converting GDLC. Is this vested? Maybe. Bc BTC and Ethereum holdings (see below), there is scope for ETFs to hold a small portion of illiquid assets, and if approved, there is a race to issue combo crypto ETFs. It’s going to jump over everyone who’s in. Some people might think this is going to work out because the discount has shrunk a little bit.”
Balchunas added that Grayscale has proceeded with the process by submitting an application to convert its Digital Large Cap Fund (GDLC) into a crypto spot ETF.
Grayscale plans to make the Spot ETF 90% BTC and ETH, with the remaining 10% consisting of XRP, SOL, and AVAX. The approval could facilitate the launch of an XRP spot ETF, increasing buyer demand for XRP.
SEC Appeal Uncertainty Limits XRP Profits
Despite Wednesday’s gains, uncertainty over the SEC’s plans to appeal the SEC v. Ripple ruling limited upside. Investors are awaiting the SEC’s Form C filing, which will reveal details of the agency’s appellate strategy. The appeal of XRP’s programmatic sales ruling could have a major impact on market sentiment.
XRP price outlook: XRP spot ETF and appeal strategy
If the SEC does not challenge the programmatic sales ruling, XRP could break above $0.55 and target $1.00. In July 2023, Judge Annalisa Torres ruled that programmatic sales of XRP do not meet Step 3 of the Howie test. XRP reacted to the ruling by surging to a July 2023 high of $0.9327.
