The post XRP ETF Approval is Inevitable, Ripple CEO Weighs In appeared first on Coinpedia Fintech News
XRP has seen a 3.74% decline over the past year, likely due to its ongoing legal battle with the SEC and the volatility triggered by updates on the case. However, the approval of an XRP ETF could help reduce this volatility by providing stability and credibility to the currency. This development could also boost XRP’s value, positioning it as a more stable and potentially undervalued asset in the market.
Ripple’s CEO, Brad Garlinghouse, believes it’s only a matter of time before the U.S. SEC approves an XRP ETF. Despite Ripple’s ending legal battle with the SEC, Garlinghouse remains optimistic, pointing to the growing demand for access to XRP from both institutional and retail investors. In a recent interview with Bloomberg, he remarked that an XRP ETF is “inevitable,” especially following the approval of Bitcoin and Ethereum ETFs.
Right now the Ripple vs SEC is in critical stage and so do the XRP price and only savious at this point is XRP ETFs or IPOs so let’s watch out why XRP ETF’s are gaining momentum.
Growing Interest in XRP ETFs
Fund managers like Bitwise and Canary Capital have already filed applications for an XRP-based ETF. If approved, these funds would allow investors to gain exposure to XRP without actually holding the cryptocurrency, trading the asset on stock exchanges instead. The move reflects increasing interest in bringing XRP into mainstream investment portfolios, similar to the paths already taken by Bitcoin and Ethereum.
Ripple’s Legal Challenges
Despite the progress, Ripple’s ongoing legal dispute with the SEC remains a challenge. In 2020, the SEC filed a $1.3 billion lawsuit against Ripple, accusing the company of selling unregistered securities in the form of XRP. While Ripple scored a partial court victory in 2022, with a ruling that sales of XRP to retail investors did not constitute securities, institutional sales were still deemed unregistered securities.
Ripple was initially fined $125 million, a significant reduction from the SEC’s $2 billion request, which many in the crypto industry interpreted as a major win for the company. Ripple’s Chief Legal Officer Stuart Alderoty believes the SEC’s ongoing appeal will backfire and has expressed confidence in Ripple’s legal standing.
Demand for XRP ETFs and Market Outlook
With a current price of $0.51, XRP remains significantly lower than its all-time high of $3.40 in 2018. However, Garlinghouse’s optimism about an ETF approval stems from what he sees as strong demand for XRP, especially as more institutional players seek exposure to the crypto asset. The approval of an XRP ETF would mark another major milestone for the cryptocurrency, solidifying its place alongside Bitcoin and Ethereum in the regulated investment space.
The future of XRP ETFs is still in a grinder and it may not take off this year due to regulatory challenges and XRP’s dropping price levels may restrict institutional investors from jumping into the arena.
What do you think will XRP ETFs are on line or its just a hype to pump XRP?