Optimism around a potential spot XRP exchange-traded fund (ETF) is rising as Ripple edges closer to the end of its long-standing legal clash with the US Securities and Exchange Commission (SEC).
On March 26, Nate Geraci, President of the ETF Store, sparked fresh discussion around the possibility of an XRP ETF. He suggested that regulatory approval might be closer than expected, especially with Ripple’s courtroom challenges nearing resolution.
Geraci expressed confidence that once the path clears, heavyweight asset managers such as BlackRock and Fidelity could offer XRP-based investment products.
BlackRock and Fidelity are the world’s leading asset management firms, managing more than $15 trillion in assets cumulatively. The two firms have significant exposure to the crypto industry, with their Bitcoin and Ethereum ETFs dominating the market.
Geraci’s optimism is rooted in XRP’s strong market presence. Currently, it ranks as the third-largest non-stablecoin crypto by market capitalization—a position likely to draw institutional interest.
According to him:
“XRP currently 3rd largest non-stablecoin crypto asset by market cap. Largest ETF issuers aren’t going to ignore this.”
Market sentiment supports this outlook. Crypto bettors on the decentralized betting marketplace Polymarket have placed heavy bets on an XRP ETF approval, assigning it an 86% probability of getting SEC clearance by the end of 2025.
Ripple-SEC settlement
The recent rise in confidence follows key developments in Ripple’s legal battle with the financial regulator.
Last week, Ripple CEO Brad Garlinghouse announced that the SEC had withdrawn its appeal, marking a turning point in the multi-year legal standoff.
On March 25, Ripple’s Chief Legal Officer Stuart Alderoty confirmed that the company would pay a $50 million fine and drop its cross-appeal against the regulator.
A key component of the proposed resolution includes lifting a court order that previously barred Ripple from selling XRP to institutional investors. However, this action still awaits SEC Commissioner approval and a green light from the court.
Despite concerns over tighter regulatory oversight, Ripple’s Chief Technology Officer David Schwartz clarified that the settlement does not alter the company’s core legal position.
According to him, Ripple will continue operating under its current framework, with the lifting of the injunction being only one of several developments likely to take shape under the SEC’s new leadership.
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