Ripple’s CEO, Brad Garlinghouse, has made a reference to the recent approval of the Ethereum ETF, suggesting that an XRP ETF may be on the horizon. However, the outcome of the ongoing Ripple v. SEC case will play a crucial role in determining whether an XRP ETF will be approved.
The approval of several Ethereum spot ETFs by the U.S. Securities and Exchange Commission (SEC) has sparked speculation about the next crypto ETF to be filed and potentially approved. XRP, the native token developed by Ripple Labs for the XRP Ledger (XRPL), is considered a leading candidate.
The recent approval of the Ethereum spot ETFs, including those from BlackRock, Grayscale, VanEck, and Fidelity, marks a significant shift in the regulatory stance towards cryptocurrencies. It indicates a growing acceptance of the crypto industry by regulators.
Experts believe that the approval of an Ethereum ETF will pave the way for other crypto ETFs to follow. Alongside XRP, other potential candidates for future ETF filings include Solana and Litecoin. Solana’s appeal to institutional investors could lead to a swift filing and possible approval. Litecoin, on the other hand, shares similarities with Bitcoin and has been classified as a commodity by its founder, Charlie Lee.
One advantage of XRP is that it has legal protection, as Judge Torres ruled last year that XRP tokens were not securities. Despite the ongoing legal battle with the SEC, legal experts anticipate a favorable outcome for Ripple. This legal clarity could attract institutional investors to invest in XRP and offer XRP-related products such as an XRP ETF.
Garlinghouse’s recent activity on social media suggests his agreement with the possibility of an XRP ETF. He liked multiple posts that speculated about an XRP ETF following the approval of the Ethereum ETF. In a previous interview, Garlinghouse acknowledged that an ETF for XRP was inevitable but did not speculate on the timing. Former Ripple director Sean McBride has suggested that an XRP ETF could emerge by 2025.
Notably, there were previous rumors that BlackRock was working on an XRP ETF, but the company later denied these claims.
Market experts caution that the ongoing Ripple v. SEC case could impede the filing and approval of an ETF. However, as the case nears its conclusion, institutional interest may increase, leading to higher demand and potentially driving XRP prices to new all-time highs.