SEC Decision on XRP ETFs Could Unlock $8 Billion Institutional Inflows

The US Securities and Exchange Commission (SEC) is facing a deadline to decide on several applications for spot XRP ETFs, which could have significant implications for the cryptocurrency market.

According to recent filings, the SEC was expected to rule on 91 pending crypto ETF applications spanning 24 tokens, including XRP. Several spot XRP ETFs are already live and trading, with a combined value of $1.44 billion in crypto inflows.

The SEC's decision comes after the agency and the Commodities and Futures Trading Commission (CFTC) jointly classified XRP as a digital commodity, placing it on the same legal footing as Bitcoin and Ethereum. This classification has led to an increase in interest in XRP derivatives, with open interest spiking 14.8% in just 24 hours.

The surge in open interest is particularly notable, as historically low levels of open interest have preceded significant price rallies in XRP. Additionally, the perpetual funding rate for XRP has surged to 0.0028, indicating that long positions are overpowering short positions and suggesting bullish sentiment among derivative traders.