Amid Ripple’s legal struggles, analysts foresee XRP’s ETF potential in 2025, marking a pivotal moment in the crypto landscape.
While the crypto market is excited about introducing spot Ethereum ETFs, observers are already considering possible presents for other big cryptocurrencies. Among these, Ripple’s XRP stands out as a viable candidate for an exchange-traded fund (ETF), with estimates implying a probable launch in 2025.
Following the recent U.S. Securities and Exchange Commission (SEC) certification of Spot Ethereum ETFs, the conversation on XRP ETFs gathered steam. Standard Chartered’s Geoffrey Kendrick underlined Ripple’s XRP as a possible ETF candidate in too distant future.
XRP CEO Brad Garlinghouse’s Supportive Tweet on SEC’s ETF Approval
Ripple CEO Brad Garlinghouse’s recent social media tweet honoring the SEC’s approval of Spot Ethereum ETFs helps the sentiment. Garlinghouse suggested a friendly attitude toward such developments by implying the certainty of several ETFs around different tokens.
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A spot crypto ETF tracks the price of a particular coin and invests portfolio money into it. This system helps retail traders be exposed to crypto values without having actual asset ownership. Although Ethereum is the focus, other well-known cryptocurrencies like XRP are attracting interest in ETF possibilities.
XRP’s road to a spot ETF is not without challenges, though. A major obstacle is the continuous legal struggle between Ripple and the SEC, which charges the former of selling unregistered securities. The outcome of this litigation will probably decide not only the course of Ripple but also the viability of an XRP ETF.
Notwithstanding these challenges, XRP is about to see good changes. With clarity and a price increase for XRP, which currently trades at $0.53, below its 2024 launch price, the expected conclusion of the dispute this summer should bring.
Moreover, the latest legal changes indicate a good climate for the crypto sector. The Financial Innovation and Technology for the 21st Century Act (FIT21) passed by the U.S. House of Representatives approved cryptocurrencies in the United States. Furthermore, highlighting the growing positive attitude toward the project is Coinbase’s choice to resume XRP trading in New York following a suspension in 2021 because of the lawsuit.
The prospect of an XRP ETF marks another turning point toward popular acceptance and integration of digital assets into conventional financial markets as the crypto terrain changes.
The US Securities and Exchange Commission’s (SEC) recent clearance of spot Ether exchange-traded funds (ETFs) for quick entry into the United States has not significantly affected Ethereum’s price movement.
While the SEC clearance signals a significant turning point, Ethereum’s price has remained unchanged. Before the SEC’s decision, Ether dropped by 3.4%, then partially rebounded by roughly 5%. According to CoinMarketCap, with a 24-hour trading volume of $47.5 billion, Ether is trading at $3,701.
The SEC approved 19b-4 applications from significant financial companies like VanEck, BlackRock, Fidelity, Grayscale, Franklin Templeton, ARK 21Shares, Invesco Galaxy, and Bitwise on May 23. This crucial stage allows these businesses to start and trade Ether ETFs on numerous platforms. Still, on the day, just one ETF issuer—Hashdex—did not receive regulatory permission.
While the approval is a significant step forward, ETF issuers must acquire SEC certification for their S-1 registration statements before spot Ether ETFs can officially begin trading.
Rumors have been developed regarding the reasons behind the SEC’s unexpected decision to expedite 19b-4 filings on May 20 and the abolition of staking from different applications. Some analysts think that political pressure was involved since bipartisan legislators backed ETF approval based on the precedent established by Bitcoin ETFs.
Industry watchers see Ethereum ETF approval as a muted admission by the SEC that Ether is not considered a security. James Seyffart, a Bloomberg ETF analyst, underlined this point by pointing out that allowing these commodities-based trust shares suggests the SEC will not pursue Ether as a security.
Views differ on whether this approval precisely addresses Ether’s security posture issue. While some, like digital asset attorney Justin Browder, feel S-1 certification would indicate Ether as not a security, others, like Verbitskii, contend the SEC’s stance is uncertain.
Soon an official statement from the SEC and several of its Commissioners should be released to offer more explanation on the matter.
The approval of spot Ether ETFs marks an industry turning point as the SEC approved many spot Bitcoin ETF applications on January 10. Industry analysts see more growth ahead; some even estimate big Ether price movements. Sumit Gupta, a co-founder of CoinDCX, saw Bitcoin’s price surge after its ETF’s January introduction and made hints about similar opportunities for Ether.
Lennix Lai, OKX’s chief commercial officer, underlined the probable institutional demand for spot Ethereum ETFs by emphasizing Ethereum’s usefulness in DeFi products and its Proof-of-Stake (PoS) architecture.
Notwithstanding these encouraging forecasts, several analysts caution against expecting a sudden increase in Ether pricing. Blocklogica Asal Alizade, a co-founder, underlined that the main shift in the market was the acceptance of Bitcoin ETFs, suggesting that Ether’s ETF certification might not have an instantaneous major impact on pricing.
According to Benjamin Charbit, CEO of Darewise Entertainment, the ETF approval might have already been considered, implying a level of maturity similar to conventional finance.
While the crypto market takes this news, the implications of the SEC’s approval of spot Ether ETFs are yet unknown.
