The recent developments in Ripple’s legal battle with the SEC have sparked optimism around the possibility of an XRP exchange-traded fund (ETF). Nate Geraci, President of the ETF Store, has suggested that regulatory approval for an XRP ETF might be closer than expected, especially with Ripple nearing a resolution with the SEC. He expressed confidence that once the legal hurdles are cleared, major asset managers such as BlackRock and Fidelity could offer XRP-based investment products. As the third-largest non-stablecoin crypto by market capitalization, XRP is likely to attract institutional interest, further supporting the case for an XRP ETF.
Market sentiment also reflects this positive outlook, with crypto bettors on Polymarket assigning an 86% probability of an XRP ETF receiving SEC clearance by the end of 2025. The recent developments in Ripple’s legal case, including the withdrawal of the SEC’s appeal and Ripple’s agreement to pay a $50 million fine, have been key factors driving this optimism. Ripple’s Chief Legal Officer Stuart Alderoty confirmed that the company would drop its cross-appeal against the regulator, signaling a potential resolution to the long-standing legal standoff.
One of the significant aspects of the proposed settlement is the potential lifting of a court order that previously prevented Ripple from selling XRP to institutional investors. However, this action is subject to approval from the SEC Commissioner and the court. Despite concerns over increased regulatory scrutiny, Ripple’s Chief Technology Officer David Schwartz has clarified that the settlement does not change the company’s core legal position. Ripple will continue to operate under its current framework, with the lifting of the injunction being just one of several expected developments under the SEC’s new leadership.
BlackRock and Fidelity, as two of the world’s leading asset management firms with significant exposure to the crypto industry through Bitcoin and Ethereum ETFs, are well-positioned to offer XRP-based investment products once regulatory approval is secured. With more than $15 trillion in assets under management between them, their entry into the XRP market could further validate the legitimacy of cryptocurrencies as an asset class. Overall, the potential approval of an XRP ETF could open up new avenues for institutional investment in the crypto market and help bolster XRP’s market presence even further.
In conclusion, the growing optimism surrounding the possibility of an XRP ETF is driven by Ripple’s progress in resolving its legal dispute with the SEC. If regulatory approval is secured, major asset managers such as BlackRock and Fidelity could offer XRP-based investment products, attracting institutional interest and potentially further boosting XRP’s market capitalization. With market sentiment also favoring an XRP ETF approval, the stage is set for potential growth and expansion in the crypto market as investors and institutions alike look to capitalize on the opportunities presented by digital assets like XRP.
