In recent weeks, Ripple Labs CEO Brad Garlinghouse created waves in the cryptocurrency world by asserting the “inevitability” of XRP being included in an exchange-traded fund (ETF). This daring prediction gained momentum, particularly in the wake of the U.S. presidential election, which saw the victory of Donald Trump, a candidate favorable to cryptocurrency. The election outcome fueled further discussion regarding XRP’s future and the possibility of its ETF debut.
Regulatory Challenges for XRP ETF
While the prospect of an XRP ETF is enticing, significant regulatory obstacles persist. Pro-XRP attorney Jeremy Hogan has highlighted these challenges. In Bitwise’s October submission to the Securities and Exchange Commission (SEC) for an XRP ETF, the company identified the SEC itself as the primary risk for potential ETF buyers. This indicates that regulatory ambiguity remains a substantial hurdle, with the SEC’s definitive stance on XRP still in flux. Hogan suggests that Bitwise’s filing might require amendments soon to align with the evolving regulatory landscape.
Insights from the Bitwise XRP ETF Filing
The October filing by Bitwise with the SEC underscores the regulatory challenges at play. The company explicitly identifies the SEC as the principal risk factor for ETF buyers. This acknowledgment points to the ongoing regulatory uncertainties that could impact the approval and launch of an XRP ETF. Given recent developments, it is anticipated that this section of the S-1 filing might need revisions in the near future to reflect changing conditions.
Market Implications and Speculations
Following the approval of the Ethereum ETF, there was a notable surge in the price of Ether. This event has led many to believe that an XRP ETF might be on the horizon, with some asserting its inevitability. Although the exact timeline remains uncertain, the introduction of an XRP ETF seems increasingly plausible.
Attorney Jeremy Hogan notes that the usual timeframe for securing ETF approval ranges from 6 to 12 months. Consequently, if all legal and regulatory hurdles are navigated successfully, we could anticipate the launch of an XRP ETF by next summer. This timeline, however, is contingent on the resolution of ongoing legal disputes and regulatory progress.
Conclusion: The Path Forward for XRP
The persistent legal battle with the SEC has undoubtedly constrained Ripple’s operations and growth potential. Looking ahead, should the legal environment evolve favorably, XRP could experience significant advancements. The resolution of the SEC lawsuit could lead to a surge in XRP’s utilization and market value. Some speculators are optimistic that major changes, such as the potential resignation of SEC Chairman Gary Gensler, could further unlock XRP’s potential, paving the way for its robust growth.
