- The recent approval of spot BTC and ETH ETFs has incited discussions regarding the potential introduction of a spot XRP ETF in the US. Ripple’s CEO Brad Garlinghouse has hinted at its prospects, calling it “inevitable.”
- Nonetheless, the ongoing litigation between Ripple and the SEC over claims of unregistered securities sales could pose challenges to the approval of such a financial product.
- Garlinghouse has reiterated that investors are seeking exposure to a diverse range of ETFs, emphasizing the historical significance of XRP within the digital assets space.
Is the launch of a spot XRP ETF in the US on the horizon? Explore the latest developments and the implications of ongoing legal challenges.
Is XRP ETF Coming Next?
The cryptocurrency market has experienced a significant uptrend since the beginning of 2024, with Bitcoin (BTC) achieving a record high of over $73,700 in mid-March and maintaining values beyond the $70,000 threshold. This surge can be partly linked to the recent introduction of financial products that were previously unavailable in the US a few months ago.
In January, the SEC granted approval for spot BTC ETFs, followed by the authorization of spot ETH ETFs last month. These ETFs allow investors to gain exposure to digital assets without the need to directly purchase them via exchanges, thereby simplifying the investment process and reducing certain risks associated with managing cryptocurrencies, such as self-custody.
Speculations have been rife over the past few months about the possible emergence of a spot XRP ETF in the United States. Ripple’s CEO, Brad Garlinghouse, has expressed confidence in this direction, calling the launch of such a product along with SOL and ADA ETFs as “inevitable.”
Garlinghouse recently emphasized that investors are interested in a variety of ETFs, not limited to those based on Bitcoin and Ethereum:
“It makes sense to have diversified asset exposure. People often overlook that, before the SEC’s involvement, XRP was once the second-most valuable digital asset.”
Garlinghouse first made comments about the likelihood of a spot XRP ETF in the US in February. Though he expressed support for this idea, he revealed that it wasn’t among Ripple’s top priorities in the company’s three-year roadmap announced later.
The Challenges With the SEC
In the US, the Securities and Exchange Commission (SEC) is responsible for approving or rejecting such financial products. Those closely following the crypto sector will know that the SEC and Ripple have been entangled in a legal dispute that recently progressed to the trial phase.
This conflict began in December 2020 when the SEC accused Ripple and certain executives of raising over $1.3 billion through an unregistered securities offering by selling XRP. Ripple has secured partial court victories on three occasions last year, which many believe positions the company for a potential decisive win.
The price of XRP has shown significant spikes following each court success, indicating that the final resolution of the case could lead to heightened volatility. For more on the specifics of the lawsuit and its impact on XRP’s price, check out our detailed video analysis linked below:
Conclusion
In summary, the possibility of a spot XRP ETF in the US hinges on intricate regulatory and legal landscapes. While the approval of BTC and ETH ETFs provides a hopeful precedent, Ripple’s legal challenges with the SEC present formidable obstacles. As this situation unfolds, investors should remain attentive to the evolving dynamics and their implications for XRP’s future.
