The current market is full of crypto ETF applications, which means that odds are increasing for approval. Currently, the only approved XRP ETF in the US is the ProShares Ultra XRP ETF. However, with recent regulatory changes and the development of the Ripple platform itself, more ETF approvals from the SEC may arrive soon.
Impact of Ripple Litigation Dismissal on XRP ETF
On August 8, the Ripple vs. SEC lawsuit ended, leaving the $125 million fine unharmed. This case termination has a significant impact on XRP ETF application approval. The litigation resolution provides clarity in regulations regarding the XRP situation. We are verifying that XRP sold in public secondary exchanges is not considered security. However, institutional sales were subject to the Securities Act.
After the fire, market sentiment quickly improved, with the odds rising to 85%. According to Polymarket, the current chance of approval for the XRP ETF is about 73%.
Additionally, ETF Store Chairman Nate Geraci commented on the same day of his lawsuit’s firing, indicating that BlackRock thinks he will apply for the XRP ETF. However, the company has now revealed that it is not planning an XRP ETF.
What do experts say?
Crypto analyst Kenny Nuguen said, “XRP should be around $22-50 when the first wave of the XRP ETF kicks in.” He implies that ETF approval is likely to trigger a massive gathering, with XRP’s market capitalization potentially reaching $1.3-3 trillion.
Previously, Canary Capital CEO Stephen McCrug said on Monday that “XRP can attract $5 billion in investment in the first month after the launch of the ETF.” On a podcast with Paul Baron, he highlighted the strong institutional demand expected for the XRP ETF, explaining that the conclusion of the lawsuit against Ripple has fueled momentum.
“I absolutely believe there will be an XRP ETF this year,” added McClurg.
The Frankfurt Stock Exchange states, “As we said, as long as we are involved in a legal dispute between this exact company and this coin, the Spot XRP ETF cannot be approved by the SEC. It’s now over.
Additionally, a Bloomberg analyst said he believes in the odds of 95% of the XRP ETF approval.
Overall, experts are bullish that the end of the Ripple lawsuit paves the way for the XRP ETF, with multiple pending applications and strong institutional benefits.
When will SEC approve the XRP ETF application?
Currently, major asset managers such as Grayscale XRP, 21 Share, Bitwise, Canary Capital, Wisdom Tree, Franklin Templeton, Coinshare, RexShare Rex, and Volatility Share are applied to XRP ETF applications. However, the SEC has delayed the decision, with the expected deadline for the final decision being October 18th to 25th.
