Analysts and Ripple executives anticipate the approval of a spot-based XRP ETF.
Ripple has faced significant regulatory challenges, particularly in its legal battle with the SEC. CTO David Schwartz discussed the company’s media strategy during this time, highlighting the struggle against misinformation while navigating legal complexities.
Recently, there has been growing speculation about the approval of a spot-based XRP ETF, with analysts and Ripple executives optimistic about its potential to follow Bitcoin and Ethereum.
ETF analyst Nate Geraci predicts that the SEC may approve a spot XRP ETF this year, positioning XRP as a leading candidate for this milestone. Ripple President Monica Long echoed this sentiment, suggesting that XRP could soon secure ETF approval, a belief shared by CEO Brad Garlinghouse.
This optimism follows a favorable court ruling last year, which determined that XRP is not a security in secondary markets. However, regulatory uncertainties still loom, with some analysts suggesting that other cryptocurrencies like Litecoin or Hedera might receive ETF approvals first.
The competition for an XRP spot ETF is intense, with several financial firms, including WisdomTree and Bitwise, submitting applications. The demand for cryptocurrency investment products is rising, especially as the SEC’s stance on digital assets evolves. Despite the success of BlackRock’s Bitcoin ETF, which has amassed nearly $53 billion in assets, the company remains cautious about altcoin ETFs, highlighting the regulatory hurdles these products face.
The approval of an XRP spot ETF could significantly impact Ripple and the broader cryptocurrency market, providing traditional investors with a regulated way to invest in XRP. This could increase demand and liquidity for the token.
However, the competition remains fierce, with Litecoin and Hedera also in the running. The coming year could be pivotal for the cryptocurrency industry, with XRP’s potential ETF approval serving as a key indicator of market growth and regulatory progress. All eyes are on the SEC as stakeholders await crucial developments.
Ripple President Monica Long recently shared positive insights about the potential approval of an XRP ETF in an interview with Bloomberg. She is hopeful that the regulatory landscape for crypto in the U.S. is improving. Long mentioned that XRP might be the next crypto to receive ETF approval, following Bitcoin and Ether. She believes that the change in administration could lead to a quicker approval process for crypto-related filings.
In addition to the ETF news, Ripple is set to launch its new stablecoin, RLUSD. This stablecoin, which was introduced to the public in December, currently has a market capitalization of $72 million.
