The approval of Bitcoin and Ethereum exchange-traded funds (ETFs) earlier this year has set the stage for other cryptocurrencies to seek similar regulatory recognition. As the market eagerly awaits the next step in this evolution, Ripple’s XRP is now a frontrunner for the creation of its own ETF. A proposal has been submitted by Canary Capital, a cryptocurrency investment firm led by former Valkyrie Chief Investment Officer Steven McClurg, to the U.S. Securities and Exchange Commission (SEC). This marks the second attempt to secure an XRP ETF, with the first proposal coming from Bitwise.
The anticipation around the approval of an XRP ETF is palpable, particularly within the XRP community. Advocates believe that an ETF would make the cryptocurrency more accessible to institutional investors, offering liquidity and potential for significant price growth. A successful approval could drive XRP’s price to unprecedented heights, potentially reaching $20, according to market predictions. The introduction of such a financial product could also boost XRP’s adoption globally, enhancing its standing within the broader cryptocurrency ecosystem.
XRP’s Journey – Legal And Market Challenges
Ripple’s journey has been far from smooth. In 2020, the SEC filed a lawsuit against Ripple Labs, alleging that it sold XRP as an unregistered security. This legal battle has cast a long shadow over Ripple’s growth, limiting its potential for partnerships and new market opportunities. The case has created uncertainty, and Ripple’s ability to expand into institutional markets has been stunted.
Despite these setbacks, analysts like Luke Thomas suggest that a favorable resolution to the SEC lawsuit could pave the way for Ripple to sell directly to institutional investors. Ripple is also poised to launch its RLUSD stablecoin once the case is resolved, potentially unlocking new avenues for business growth. This move could significantly impact Ripple’s market position, especially as the firm continues to build partnerships with global exchanges.
Political Shifts and Their Impact on XRP
The political landscape in the United States has recently experienced a major shift with Donald Trump’s victory in the 2024 U.S. presidential elections. This victory has already had a ripple effect on the cryptocurrency market, with Bitcoin reaching a new all-time high of $75,395. Other cryptocurrencies, including Dogecoin, have followed suit, with a notable 20% spike. One of the most significant changes under Trump’s administration could be the dismissal of SEC Chair Gary Gensler, who has led the charge on regulating cryptocurrencies. Analysts believe that Trump’s stance on crypto regulation could help resolve Ripple’s ongoing legal issues, ultimately leading to the long-awaited settlement.
The resolution of the SEC case is seen as a critical milestone for Ripple, not just for the potential ETF approval, but for its broader aspirations. The company plans to go public with an IPO by the end of 2025, once it has successfully navigated regulatory hurdles. This move could position Ripple as a top player in the global financial technology space.
Also Read: Can XRP Hit $50? Key Stats On SEC Lawsuit & Token Circulation Reveal Major Obstacles
Ripple’s Roadmap to a Trillion-Dollar Future
Ripple’s global business footprint and innovative technology place it on a promising trajectory for future growth. With the right regulatory environment in place, analysts believe Ripple has the potential to become the first trillion-dollar crypto company. In fact, Ripple’s trading volume has recently increased by 5.80%, with its market cap sitting at $31.58 billion. Although XRP has faced some price fluctuations, with a slight drop of 0.39% in the last hour, the market remains optimistic about Ripple’s future.
As Ripple prepares for a potential XRP ETF and its IPO, the coming months will be crucial. With favorable regulations, an XRP ETF could not only elevate XRP’s price to new heights but also solidify its place as a cornerstone of the global cryptocurrency market.
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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