Narrative XRP ETF: Between Hopes and Challenges, Will It Come True?

Bittime – There have been rumors that Ripple (XRP) will launch an ETF following Ethereum and Bitcoin. However, will that really happen? How do you predict the difficulty of passing the SEC? The following is a complete explanation.

Is Ripple ETF Real?

The achievement of Bitcoin and Ethereum spot ETF approvals in the United States this year has fueled speculation about which cryptocurrencies will be next in line for similar investment products. Many experts predict Ripple and Solana to be on the list.

However, a major challenge still stands in the way of Ripple, the company behind XRP: an ongoing legal dispute with the United States Securities and Exchange Commission (SEC) regarding allegations of selling securities without registration.

These unresolved lawsuits could delay or even prevent the approval of an XRP ETF. However, the possibility of a solution remains open.

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Ripple ETF: Inevitable?

While the market anticipates Solana or Ripple as the next crypto to gain ETF approval from the SEC, Ripple CEO Brad Garlinghouse asserted that ETFs for various crypto assets are “inevitable.”

Garlinghouse predicts many other cryptocurrencies will soon have similar investment vehicles. Ripple CEO is optimistic the crypto market will reach a $5 trillion valuation, driven by the recent approval of Bitcoin and Ethereum spot ETFs in the US.

He also emphasized his confidence in a number of successful projects in the crypto space, each making unique contributions to the decentralized finance and digital asset industry.

Interestingly, he is not the only well-known figure in the crypto world to share these positive sentiments about further ETF approvals. Earlier this year, BlackRock CEO Larry Fink was asked about the potential launch of an XRP ETF.

Although Fink declined to comment, his response sparked speculation in the XRP community that BlackRock might be considering such a financial product.

Read Also: CME Launches Real-Time Index for XRP: New Support for Ripple's Growth in Financial Markets

Is BlackRock Involved?

Ripple CEO Brad Garlinghouse has hinted at a possible innovative collaboration between BlackRock and Ripple to launch an XRP ETF in the United States. This development could significantly impact the cryptocurrency market and improve XRP's position in the financial world.

Garlinghouse stated, "We think this makes sense for the XRP community as a whole," indicating that this move will benefit XRP holders and the broader crypto ecosystem.

If realized, this ETF could provide greater accessibility and legitimacy to XRP, attracting more institutional investors and increasing market confidence.

The partnership with BlackRock, the global investment management giant, underscores the growing acceptance and integration of crypto into mainstream financial products.

The potential launch of an XRP ETF could pave the way for further innovation and adoption in the digital asset space, marking an important milestone for Ripple and its community.

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Ripple vs. SEC

The Southern District Court of New York handled the case of SEC vs. Ripple. In 2020, the United States Securities and Exchange Commission (SEC) accused Ripple, the blockchain developer behind the cryptocurrency XRP and two of its top managers, of raising more than $1.3 billion through an unregistered securities offering in 2013.

Ripple denied these allegations by citing previous comments from an SEC director to argue that XRP should not be classified as a security. The SEC argued that Ripple failed to file registration documents.

This is a necessary document for companies wishing to raise capital from the public. The regulator further claimed that Ripple “created an information vacuum,” by intentionally disclosing information at its discretion.

On July 13, 2023, the court ruled that XRP, like all cryptocurrencies, is not a security when sold to the public on exchanges.

However, it is considered a security when sold to institutional investors. In October 2023, the SEC dropped all charges against Ripple executives. However, they continue to pursue efforts to sell securities without alleged registration.

In May 2024, the SEC filed its final response regarding the remedies sought. The watchdog asserted that Ripple's profits were illegitimate and that the company's defense did not match the evidence presented against it.

Read Also: Analysis of XRP Price Increase Prediction to $22 in 2025

Ripple and SEC Dispute Ending Soon?

Ripple CEO Brad Garlinghouse expressed optimism in a recent interview with Bloomberg that the company's long legal battle with the United States Securities and Exchange Commission will be resolved "very soon."

Following Garlinghouse's cryptic comments, XRP prices rallied on speculation that a settlement could come soon after a closed-door meeting with the SEC next week.

According to analytics firm Santiment, activity on the Ripple ledger and the creation of new addresses have surged to the highest level since March. This increase shows growing interest and engagement within the XRP community around a possible settlement.

Read Also: Weekly Crypto News July 21 - July 28 July 2024: ETH ETF and Bitcoin Conference 2024

Stablecoins Before ETFs

The future of the Ripple ETF remains uncertain. However, Ripple President Monica Long sparked speculation about the potential launch of a Ripple stablecoin later this year.

In an interview, Long provided insight into the development and potential launch of Ripple's stablecoin. Although specific details about the launch date and features have not been made public, he hinted that the crypto community can expect a possible release by the end of the year.

Long emphasized the important role of stablecoins in the volatile crypto market. He noted their multi-billion dollar market cap. He also highlighted their reliability as a payment option for users looking to move and store assets safely.

Conclusion

The future of Ripple and XRP is filled with potential and challenges. While the legal dispute with the SEC is still ongoing, the company continues to move forward with strategic plans. The potential launch of an XRP ETF and Ripple stablecoin could be a growth catalyst for the XRP ecosystem.

Ripple's stablecoin, if realized, could provide a more stable and reliable alternative for users to carry out transactions. This could also expand the use of the XRP Ledger and attract more financial institutions to get involved in the Ripple ecosystem.

However, the full realization of Ripple's potential depends on resolving the legal case with the SEC. The outcome of this case will have a significant impact on investor confidence and the overall development of XRP.

Overall, the crypto industry continues to develop rapidly, and Ripple plays an important role in shaping its future. With a focus on innovation, strategic partnerships, and regulatory compliance, Ripple has the potential to become a major player in the digital financial ecosystem.

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