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As the current market is flooding with crypto ETF applications, odds are rising for approval. Currently, the only approved $XRP ETF in the US is the ProShares Ultra $XRP ETF. However, with the recent regulatory changes and the Ripple platform’s own developments, the SEC’s approval of many more ETFs may arrive soon.
Impact of Ripple Lawsuit Dismissal on $XRP ETF
On August 8, the Ripple vs SEC lawsuit concluded, leaving a $125 million fine intact. This case dismissal has a huge impact on $XRP ETF applications’ approval. The lawsuit’s resolution brings regulatory clarity regarding $XRP’s status. It confirms that $XRP sold on public secondary exchanges is not considered a security. However, institutional sales were subject to securities laws.
After the dismissal, market sentiment immediately improved, with odds rising to 85%. According to Polymarket, the current possibility for $XRP ETF approval is around 73%.
Moreover, Nate Geraci, president of The ETF Store, commented on the same day of the lawsuit dismissal, indicating that he believes BlackRock will apply for an $XRP ETF. However, the company clarified that it is not planning for any $XRP ETF currently.
What are the Experts Saying?
A crypto analyst, Kenny Nguyen, said, “$XRP SHOULD BE AROUND $22 – $50 WHEN THE FIRST WAVE OF SPOT $XRP ETFS KICKED IN.” He implied that ETF approval would likely cause a major rally, with $XRP’s market cap potentially reaching $1.3 to $3 trillion.
Previously, on Monday, Steven McClurg, CEO of Canary Capital, stated, “$XRP could attract $5 billion in investment in its first month post-ETF launch.” In a podcast with Paul Barron, he highlighted the strong institutional demand expected for an $XRP ETF, explaining that the lawsuit’s conclusion against Ripple has accelerated momentum.
“I absolutely believe there will be an $XRP ETF this year,” McClurg added.
The Frankfurt Stock Exchange stated, “As we said, a spot $XRP ETF cannot be approved by the SEC as long as you are involved in a legal dispute with this exact company and this coin. That’s over now. So, from this point of view, nothing should stand in the way of a Spot $XRP ETF now.”
Additionally, a Bloomberg analyst also said that he believes in 95% odds of $XRP ETF approval.
Overall, experts are bullish that the Ripple lawsuit’s end has paved the way for $XRP ETFs, with multiple pending filings and strong institutional interest.
When Will the SEC Approve the $XRP ETF Application?
Currently, major asset managers like Grayscale $XRP, 21Shares, Bitwise, Canary Capital, Wisdom Tree, Franklin Templeton, CoinShares, RexShares Rex-Osprey, and Volatility Shares have applied for an $XRP ETF application. However, the SEC has delayed its decision, and the expected deadline for the final decision is October 18 to 25.