Ripple’s Quest for an XRP ETF Gains Momentum Amid Regulatory Hurdles
With cryptocurrency exchange-traded funds (ETFs) gaining traction, Ripple and other major players are ramping up efforts to secure approval for an XRP ETF. Ripple CEO Brad Garlinghouse remains confident, asserting that regulatory challenges presented by the U.S. Securities and Exchange Commission (SEC) won’t stall XRP’s ETF launch for long. Following successful ETF introductions for Bitcoin and Ethereum, XRP could potentially join the ranks, perhaps as early as mid-2025.
Market analysts foresee a substantial shift in XRP’s market accessibility as more financial institutions submit ETF applications. Notable firms, including Bitwise and Canary Capital, are pioneering these proposals, prioritizing investor safety and regulatory compliance. In a recent Bloomberg TV interview, Garlinghouse expressed his optimism: “It’s inevitable. An XRP ETF will stand alongside Bitcoin and Ethereum soon.” He also pointed to the positive reception of Ethereum’s ETF, underscoring a growing demand for diverse crypto ETF options. Additionally, Grayscale is exploring adding XRP to its diversified crypto fund, potentially simplifying access for institutional and high-net-worth investors.
An XRP ETF would offer significant advantages in accessibility and convenience: investors wouldn’t need to manage crypto wallets and could easily trade XRP through traditional brokerage accounts. This streamlined approach could attract both institutional investors and everyday traders, increasing adoption and demand.
While regulatory uncertainties persist, with the SEC still reviewing XRP’s legal standing, a recent court ruling permitting XRP sales to retail investors has offered some encouragement. The SEC is appealing this decision, but legal experts anticipate further clarity by early 2025. The SEC’s stance on other crypto ETFs could serve as an indicator of XRP’s future regulatory prospects.
Currently valued at $0.52, XRP’s price could see a substantial uptick if an ETF is approved. As market interest in XRP continues to grow, its potential as an institutional investment vehicle remains promising. All eyes are on the SEC as the agency’s regulatory actions could pave the way for an XRP ETF, marking a significant step in the evolution of crypto investing.