XRP ETF Approval in 2025 Just One Step Away, Will SEC Orderly Withdraw?

Bittime - After previously the SEC (Securities and Exchange Commission) gave the green light for a Bitcoin ETF (BTC) in January 2024 and an Ethereum ETF (ETH) in July 2024, now the market is betting that the XRP ETF will follow. 

Data from Polymarket shows that the chances of an XRP ETF being approved in 2025 reach 87%. Is this a sign that crypto regulations are becoming friendlier? Here's the review.

SEC Loose, Market Increasingly Confident

One of the reasons the XRP ETF will be approved is the SEC's recent decision to withdraw from the lawsuit against Ripple Labs. This decision was welcomed by the market as a positive signal that regulators are starting to soften towards XRP and other cryptocurrencies. 

This sentiment immediately boosted investor confidence, as evidenced by the surge in bets on Polymarket regarding the approval of the XRP ETF.

Read also: Solana ETF Futures Begins Trading in the US

Previously, the SEC was known to be tough on Ripple and XRP, arguing that XRP was considered an unauthorized traded security. However, with the SEC withdrawing from the lawsuit, the path for an XRP ETF appears to be opening up.

The New Wave of Crypto ETFs

Since Donald Trump took office as the 47th president of the US, alternative crypto ETF registrations have been increasing. Not only XRP, other crypto assets such as Litecoin (LTC), Hedera (HBAR), Solana (SOL), Cardano (ADA), and Polkadot (DOT) are also on the SEC's radar. 

Several large companies such as Grayscale, Vaneck, and Bitwise are now racing to get regulatory approval. In addition to the XRP ETF, bets on Polymarket also reflect optimism about other ETFs:

• The Cardano (ADA) ETF has a 61% chance of being approved in 2025.

• The Litecoin (LTC) ETF has a probability of 68% with a total bet of $33,577 (around IDR 554 million).

• The Solana ETF (SOL) even reached a probability of 87%, with bets reaching $104,793 (around IDR 1.73 billion).

Read also: Canary Capital Proposes ETF SUI Coin, SUI Price Rises 6%

Interestingly, there have been no significant bets on ETFs from other crypto projects such as DOT, HBAR, MOVE, APT, or SUI.

Increasingly Friendly Crypto Regulations?

The growing interest in crypto ETFs indicates a major shift in digital asset regulation. Previously, the SEC tended to refuse crypto assets outside Bitcoin and Ethereum to be traded in the form of ETFs. 

However, with a series of ETF approvals occurring since early 2024, there are indications that the crypto market is becoming more accepted in the mainstream investment realm.

If an XRP ETF is indeed approved, this could create huge momentum for other crypto assets. As more financial institutions become interested in crypto ETFs, mass adoption could be closer.

FAQ

1. What is an XRP ETF?

An XRP ETF is a financial product that allows investors to gain exposure to the price of XRP without having to purchase or hold the crypto asset directly.

2. Why could an XRP ETF be approved in 2025?

Optimism is rising after the SEC withdrew its lawsuit against Ripple Labs and the trend of crypto ETF approvals is gaining strength, with Bitcoin and Ethereum already gaining approval in the past.

3. What impact will the approval of an XRP ETF have on the price of XRP?

If an XRP ETF is approved, demand for XRP could increase, which would likely have a positive impact on the price of the asset.

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Reference 

Dimsum Daily, XRP ETF confidence soars to 87% as traders anticipate 2025 approval, accessed on March 24 2025.

Bitcoin.comNews, Ripple Effect: Surging XRP ETF Optimism Follows SEC Legal Retreat, accessed March 24, 2025.

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