Excitement Builds for Potential XRP ETF Approval
Anticipation is growing for the approval of a spot XRP exchange-traded fund (ETF) as Ripple moves closer to resolving its legal battle with the US Securities and Exchange Commission (SEC).
The ETF Store President Predicts Regulatory Approval
On March 26, Nate Geraci, President of the ETF Store, reignited discussions about the possibility of an XRP ETF. He suggested that regulatory approval could be on the horizon, especially with Ripple making progress in its courtroom disputes.
Geraci is confident that once the regulatory hurdles are cleared, major asset management firms like BlackRock and Fidelity might start offering investment products based on XRP.
BlackRock and Fidelity’s Involvement
BlackRock and Fidelity are global leaders in asset management, collectively overseeing over $15 trillion in assets. These firms have already made their mark in the crypto industry with successful Bitcoin and Ethereum ETFs.
XRP’s Market Presence Sparks Optimism
XRP currently holds the position of the third-largest non-stablecoin cryptocurrency by market capitalization, making it an attractive option for institutional investors. Geraci’s optimism stems from XRP’s strong market presence.
According to Geraci:
“XRP currently 3rd largest non-stablecoin crypto asset by market cap. Largest ETF issuers aren’t going to ignore this.”
Market Sentiment and Predictions
The decentralized betting marketplace Polymarket reflects market sentiment by assigning an 86% probability of an XRP ETF receiving SEC approval by the end of 2025. This indicates a high level of confidence in the potential approval.
Ripple’s Legal Settlement with the SEC
The recent surge in optimism follows significant developments in Ripple’s legal dispute with the SEC.
Ripple CEO Brad Garlinghouse announced last week that the SEC had withdrawn its appeal, signaling a pivotal moment in the prolonged legal battle.
On March 25, Ripple’s Chief Legal Officer Stuart Alderoty confirmed that the company had agreed to pay a $50 million fine and would drop its cross-appeal against the regulator.
A crucial aspect of the proposed settlement involves lifting a court order that previously prevented Ripple from selling XRP to institutional investors. However, this step is pending approval from SEC Commissioners and the court.
Despite concerns about increased regulatory scrutiny, Ripple’s Chief Technology Officer David Schwartz clarified that the settlement does not change the company’s fundamental legal stance.
Schwartz emphasized that Ripple will continue to operate within its existing framework, with the lifting of the injunction being just one of the many developments anticipated under the SEC’s new leadership.
