The United States Securities and Exchange Commission (SEC) has approved new listing standards for crypto exchange-traded funds (ETFs), a decision expected to reshape the digital asset market.
The rule change allows Cboe, Nasdaq, and NYSE to list and trade Commodity-Based Trust Shares under a standardised framework.
For the first time, exchanges will not need to file a 19-b form for each new crypto ETF if they meet the criteria, removing a 240-day review hurdle.
This development could pave the way for XRP spot ETFs, as regulatory clarity emerges following Ripple’s legal battle with the SEC.
SEC clears generic listing standards
The SEC’s Generic Listing Standards (GLS) extend to crypto spot ETFs, effectively fast-tracking applications that meet predefined requirements.
Exchanges previously had to submit individual filings for every product, but the new framework aligns crypto ETFs with traditional ETFs that benefitted from similar rules in 2019.
Historical data shows ETF launches more than tripled after generic rules were introduced for equity ETFs, suggesting a surge in crypto ETF offerings is possible.
Analysts expect the GLS to accelerate the approval process for products such as the Grayscale Digital Large Cap ETF (GDLC) and the Bitwise 10 Crypto Index ETF (BITW).
Both include XRP in their holdings and have faced repeated delays despite prior conditional approvals.
The streamlined process means issuers that meet GLS criteria may soon be able to launch without extended regulatory waiting periods.
XRP ETFs and Ripple case resolution
The ruling arrives shortly after the conclusion of the SEC vs Ripple lawsuit, which had cast uncertainty over XRP’s regulatory status.
In August, the US Court of Appeals approved the dismissal of the SEC’s appeal against Judge Torres’ 2023 ruling that programmatic sales of XRP did not constitute securities transactions.
The decision effectively confirmed that XRP itself is not a security, a critical clarification for potential ETF issuers.
This backdrop has heightened interest in XRP ETFs. Eleven issuers have filed applications, including 21Shares, Bitwise, Canary Capital, CoinShares, Franklin Templeton, Grayscale, and WisdomTree.
Seven of these are spot ETF filings, with decision deadlines scheduled between 18 and 25 October, except Franklin Templeton’s deadline set for 14 November.
Market watchers see these timelines as pivotal, particularly after the precedent set by Bitcoin and Ethereum ETF approvals earlier this year.
REX-Osprey XRP ETF launch and price moves
A significant milestone will be the launch of the REX-Osprey XRP ETF (XRPR) on Thursday, 18 September, marking the first XRP ETF in the United States.
The fund takes a hybrid approach, investing directly in XRP, other XRP ETFs, and XRP derivatives.
Its launch will provide a test case for demand in XRP-linked products before the SEC rules on pending spot applications.
Meanwhile, XRP has shown strong performance in the lead-up. On Wednesday, 17 September, the token rose 1.53% to close at $3.0838, building on a 1.29% gain the previous day.
It outpaced the broader market’s 0.73% rise, closing above the $3 threshold. Traders are watching resistance at $3.2 and $3.335, with the all-time high of $3.66 in sight if bullish momentum continues.
Key support levels stand at $3, $2.8, and $2.5, highlighting the technical ranges investors are tracking.
Market scenarios and catalysts
Several potential events could shape XRP’s price trajectory in the coming weeks.
Positive developments include strong inflows into the REX-Osprey ETF, SEC approval of pending spot ETFs, adoption of XRP as a treasury reserve by blue-chip firms, Ripple securing a US-chartered bank licence, and progress on the Market Structure Bill.
A shift in global remittance market share from SWIFT to Ripple could also bolster demand.
On the other hand, setbacks such as weak ETF inflows, SEC rejections of spot ETF applications, political challenges to crypto legislation, or delays in Ripple’s banking licence could push XRP below $3.
External market conditions and institutional appetite will play a decisive role in determining which scenario unfolds.
For now, the approval of generic listing standards has opened the door to a new phase in crypto finance.
With the first US XRP ETF launching and multiple applications awaiting decisions, the market is entering a period where regulatory clarity and investor demand could combine to drive fresh highs—or expose vulnerabilities in the sector.
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