In recent weeks, Ripple Labs CEO Brad Garlinghouse has stirred significant interest in the cryptocurrency community by declaring the inevitable future offering of Ripple’s XRP through an exchange-traded fund (ETF). This bold statement gained further traction following the U.S. presidential election, which saw the election of pro-crypto candidate Donald Trump. The election results have sparked renewed speculation about the future of XRP and the potential launch of an XRP ETF.
Regulatory Challenges and the SEC
Despite the growing optimism, pro-XRP lawyer Jeremy Hogan has highlighted substantial obstacles that remain on the path to an XRP ETF. In October, Bitwise filed for an XRP ETF with the Securities and Exchange Commission (SEC), but outlined that the most significant risk to potential ETF buyers is the SEC itself. This underscores the ongoing regulatory uncertainties, as the SEC’s stance on XRP remains inconclusive. Hogan suggests that this part of the filing may require updates soon to reflect changing regulatory landscapes.
Implications of Recent Crypto ETF Approvals
Following the approval of the Ethereum ETF, Ether’s price experienced a notable increase. This development has fueled speculation that an XRP ETF might not be far behind, with some asserting its inevitability. Although exact timelines remain uncertain, the introduction of other crypto ETFs, including one for XRP, appears increasingly plausible.
Potential Timeline for an XRP ETF
According to Hogan, the typical timeline for ETF approval spans approximately 6 to 12 months. This suggests that, assuming all legal and regulatory hurdles are navigated successfully, an XRP ETF could potentially launch by next summer. However, this is contingent on the resolution of ongoing legal proceedings and regulatory developments.
Looking Ahead: The Future of XRP
The ongoing legal battle with the SEC has undoubtedly hindered Ripple’s ability to fully capitalize on its potential. However, looking to the future, if favorable legal developments occur, XRP could experience significant growth. Once the SEC lawsuit is resolved, a substantial increase in XRP’s utility and value could be on the horizon. Some speculate that significant changes, such as the resignation of SEC Chairman Gary Gensler, could further unlock XRP’s true potential.
