The resolution of Ripple’s four-year legal battle with the SEC removes a regulatory barrier to XRP exchange-traded fund (ETF) approval in the U.S.
Experts now believe XRP ETFs in the United States are likely.
Analyst Predicts ETF Filings by Major Firms
ETF analyst Nate Geraci expresses optimism regarding XRP ETFs.
He argues that with legal uncertainties resolved, major financial institutions like BlackRock and Fidelity may seek to launch products tracking XRP.
In a March 26 X post, Geraci stated spot XRP ETF approval seems “simply a matter of time.”
He expects firms like BlackRock and Fidelity to participate.
Geraci also highlighted XRP’s market capitalization, exceeding $144 billion, as a reason major ETF issuers are unlikely to ignore it.
While acknowledging SEC’s caution with altcoin ETFs, Geraci anticipates eventual approvals for crypto ETFs.
He notes the ongoing discussion about broad crypto index versus single-asset ETFs but remains positive on crypto ETF expansion generally.
He does expect regulators to define limits for ETF approvals.
Ripple’s Lawsuit: Former Obstacle Removed
Ripple‘s legal dispute with the SEC was considered a major impediment to XRP ETFs.
The SEC initiated the suit in 2020, alleging unregistered securities sales of XRP.
In 2023, Judge Analisa Torres ruled Ripple’s programmatic XRP sales were not securities violations.
She found institutional sales illegal, fining Ripple $125 million. Both the SEC and Ripple appealed.
Appeals Dropped, ETF Speculation Rises
The SEC subsequently dropped its appeal, and Ripple withdrew its cross-appeal.
Ripple will pay a reduced $50 million penalty from the initial $125 million.
The case conclusion, alongside ETF speculation, caused the XRP price to briefly rise above $2.5.
XRP currently trades at $2.45, a 1.3% increase in 24 hours and a 7.3% increase over seven days, outperforming the broader crypto market’s 2% gain in the same period.
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