Ripple’s legal dispute with the U.S. Securities and Exchange Commission (SEC) has finally come to a close. With the case now behind them, conversations around the possibility of an XRP exchange-traded fund are beginning to pick up again. One of the biggest names being mentioned in this context is BlackRock.
Nate Geraci, who heads The ETF Store and is well-known in the ETF space, believes BlackRock might be preparing to file for a spot XRP ETF. In a recent post on social media, he suggested the firm was likely waiting for regulatory clarity before taking the next step.
Ripple Labs and the U.S. SEC jointly dismissed all remaining appeals in their lawsuit, which began in December 2020.Â
The case raised the question of whether XRP, the digital token of Ripple, is a security. The dismissal confirms XRP is not a security for retail investors. This clears the way for U.S. exchanges and funds to list XRP products more freely.
With the legal hurdle removed, Ripple can accelerate its growth. In the recent past, Ripple announced that it would acquire Rail, a stablecoin infrastructure firm, at a cost of $200 million. This will support Ripple’s RLUSD stablecoin project. For investors, XRP now has less legal risk and more potential.
XRP Price Surges on Legal Victory
After the news, the price of XRP increased by more than 13% in 24 hours, outpacing the crypto market growth of 3.75%. South Korean exchanges saw trading volume surge by more than 1,200%. Derivative traders bought large call and put options, signaling expected volatility.
However, Bloomberg analyst Eric Balchunas is doubtful that an XRP ETF will be filed soon. He believes that BlackRock could instead concentrate on Bitcoin and Ethereum ETFs, as there are few advantages to increasing the number of crypto assets.
Meanwhile, Polymarket’s odds for XRP ETF approval rose to 88%, reflecting growing optimism. By filing an XRP ETF, BlackRock would increase the crypto exposure of investors to more than Bitcoin and Ethereum, making digital assets more accessible.
What is an ETF?
An ETF (Exchange-Traded Fund) is a stock exchange-traded investment fund. A crypto ETF allows one to purchase shares that are pegged to cryptocurrencies without having to own the cryptocurrencies directly, making crypto investing easier for all.
This legal certainty may become a breakthrough in the development of XRP and crypto ETFs in mainstream finance.
Also Read: Analyst Target XRP Price $4 as SBI Files for XRP ETF
