The race to launch an XRP exchange-traded fund (ETF) in the U.S. is heating up, with Canary Capital making its second filing for the investment instrument. This filing follows Bitwise’s pioneering attempt earlier this month, signaling a growing push from Wall Street players eager to tap into Ripple’s native cryptocurrency. Market sentiment is turning increasingly optimistic, with many experts pointing to a potential approval on the horizon.
Industry Optimism – A Ripple Effect
Nate Geraci, President of ETF Store and a well-regarded figure in the ETF space, recently expressed confidence in an XRP ETF becoming a reality. “Approval is a matter of when, not if,” Geraci remarked, underscoring the growing belief that regulatory approval is within reach. However, he noted that a change in the political and regulatory landscape—namely, a shift in U.S. presidential and SEC leadership—could play a pivotal role in accelerating this outcome.
The U.S. Securities and Exchange Commission (SEC), under current chair Gary Gensler, has drawn widespread criticism from the crypto community for its regulatory approach. Many believe that a change in administration, possibly following the 2024 presidential election, could open the door for more crypto-friendly policies. Some investors are even speculating that a victory by Donald Trump, who has recently expressed interest in digital assets, could be a catalyst for broader crypto adoption, including the launch of an XRP ETF.
Ripple SEC Case – A Speed Bump or a Roadblock?
Despite the optimism surrounding the ETF filings, the ongoing Ripple-SEC legal battle remains a cloud over the process. The SEC recently filed an appeal in its case against Ripple, sparking concerns that the litigation could drag on and further delay regulatory approval. Ripple’s Chief Legal Officer Stuart Alderoty hinted that the company may consider a cross-appeal, potentially extending the legal drama.
Nevertheless, the Ripple community remains hopeful. Pro-XRP lawyer Bill Morgan recently addressed concerns over the XRP ETF filings, dismissing suggestions that the firms were “trolling the SEC.” Ripple CEO Brad Garlinghouse also signaled confidence, hinting that progress is being made despite the legal challenges.
XRP’s price has seen modest gains, up nearly 1% to $0.5301, though its trading volume dropped 25%, signaling that investors are cautious amid ongoing legal uncertainties. The cryptocurrency briefly crossed the $0.66 mark before pulling back following the SEC’s appeal, reflecting the market’s sensitivity to regulatory developments.
Despite the short-term price fluctuations, bullish sentiment persists. Some analysts predict that XRP could rally to $3 by the end of the year, buoyed by the ETF filings and a potential resolution to the Ripple-SEC case. However, an ex-SEC lawyer recently suggested that a settlement is unlikely, adding another layer of complexity to the situation.
Also Read: XRP vs. Bitcoin – Matt Hamilton Highlights XRP’s 3,400 TPS Advantage And $0.0002 Fees
A Waiting Game
While the SEC’s appeal may have dampened some of the excitement around XRP, the market remains hopeful. The second XRP ETF filing from Canary Capital has reignited optimism, and many experts believe that regulatory approval is only a matter of time. As the legal battles continue and the political landscape evolves, the crypto community will be watching closely for any signs of a breakthrough.
In the meantime, XRP investors are likely to tread cautiously, waiting for clearer signals before making their next move. Whether or not an XRP ETF is inevitable, one thing is clear: the digital asset remains at the center of the ongoing tug-of-war between innovation and regulation.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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