Monica Long, President of Ripple, has emphasized the potential for an XRP ETF in the future, citing the cryptocurrency’s regulatory clarity and substantial trading volumes as key supporting factors.
The recent alignment of District Judge Amy Berman Jackson with Judge Torres’ ruling on XRP, as well as her dismissal of the SEC’s arguments in the Binance versus SEC case, are being celebrated as significant legal victories for the cryptocurrency industry.
In 2024, ETFs have become a major topic of discussion in the crypto space as holders of crypto assets speculate on the potential impact of institutional capital inflows into their favorite coins.
With the recent approval of Bitcoin and Ethereum ETF applications by the SEC, supporters of other crypto projects, including the XRP community, are advocating for their own ETFs, according to a report by Crypto News Flash. Ripple President Monica Long has also made a case for XRP ETFs in a recent interview.
During the interview, Long stated, “I think it would be very sensible for someone to launch an XRP ETF,” highlighting the asset’s longevity and high trading volumes on leading exchanges as key factors supporting the launch of XRP ETFs. She also emphasized that XRP and Bitcoin are the only crypto assets with regulatory clarity in the U.S., referencing the July 2023 court ruling in the SEC case against Ripple that determined XRP is not a security.
Long’s remarks echo those of Ripple CEO Brad Garlinghouse, who previously stated that XRP ETFs are “inevitable.” However, despite the optimism from Ripple executives, experts believe that more altcoin ETFs may still be years away.
According to experts such as ETF Store President Nate Geraci and Senior Bloomberg Analyst James Seyffart, the launch of ETFs linked to altcoins like XRP and Solana faces several prerequisites that may take several years to accomplish, including establishing and commencing a CFTC-regulated futures market for these assets.
However, there is a recent development that may improve the chances of an XRP ETF. District Judge Amy Berman Jackson’s alignment with Judge Torres’ ruling on XRP regarding programmatic and secondary sales is seen as a significant development for the cryptocurrency industry.
Furthermore, in the case of Binance versus the SEC, Judge Jackson has dismissed the SEC’s contention regarding secondary sales of BNB tokens by entities other than Binance. This decision underscores judicial clarity on the classification of crypto assets under the Howey Test criteria for investment contracts.
Despite Ripple’s success in the crypto industry and the legal victories, the price of XRP has been under constant selling pressure and has recently fallen below $0.50, according to a report by Crypto News Flash. As of press time, XRP is trading 1% down at $0.4757 with a market cap of $26.4 billion.