The long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has finally come to a close, marking a pivotal moment for the cryptocurrency industry. Ripple has officially dropped its cross-appeal, effectively ending the years-long litigation that began in 2020. This resolution has sparked renewed optimism among analysts and investors about the potential for a spot XRP exchange-traded fund (ETF) to be approved in the United States.
Nate Geraci, president of ETF Store, described Ripple’s decision as a turning point that clears a major regulatory hurdle. “This legal development removes one of the biggest roadblocks preventing major asset managers like BlackRock from moving forward with XRP-related products,” Geraci noted. With the regulatory cloud lifting, the path toward institutional adoption of XRP appears increasingly viable.
Legal Resolution Paves Way for Institutional Interest
The SEC had long maintained that XRP was an unregistered security, a stance that deterred traditional financial institutions from engaging with the asset. However, Ripple’s strategic legal victories—particularly the July 2023 ruling that XRP sales on public exchanges did not constitute securities offerings—laid the groundwork for this settlement. Now, with both parties withdrawing their appeals, the door is open for regulated financial products tied to XRP.
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Legal experts such as Fred Rispoli and Bill Morgan have praised Ripple’s approach, highlighting its focus on compliance and long-term vision. “Ripple’s strategy wasn’t just about winning in court—it was about building credibility with regulators and institutions alike,” Rispoli commented. This credibility could now translate into tangible financial products backed by major Wall Street players.
BlackRock in the Spotlight: Will They Launch an XRP ETF?
While BlackRock has not yet confirmed any plans to launch an XRP-based ETF, market speculation is intensifying. The world’s largest asset manager has already filed for spot Ethereum ETFs and expanded its digital asset offerings through its tokenization platform. Given this trajectory, many analysts believe XRP could be next on the list.
Bloomberg Intelligence analysts recently updated their forecast, now estimating a greater than 95% chance that an XRP ETF will be approved by the SEC in the near term. This dramatic shift in sentiment reflects growing confidence in the regulatory clarity surrounding XRP.
Polymarket data further supports this bullish outlook, showing a 78% probability that an XRP ETF will be approved before the end of 2025. Traders and investors are positioning themselves accordingly, anticipating that BlackRock may seize the opportunity to lead the charge into this emerging market segment.
Market Reaction: XRP Price Surges Amid ETF Hype
The market reacted swiftly to the news of Ripple’s appeal withdrawal. Within hours, XRP’s price surged over 3.5%, reaching $3.18—a level not seen in years. The rally triggered approximately $55 million in liquidations, primarily affecting short positions held by traders who had bet against the asset.
This sharp movement underscores growing investor confidence and highlights the potential for increased volatility as ETF speculation builds. With more institutional-grade infrastructure coming online, including custodial solutions and regulated trading venues, XRP is increasingly being viewed as a legitimate asset class rather than just a speculative cryptocurrency.
Global Precedent: Canada’s 3iQ XRP ETF Shows Strong Demand
While the U.S. debates regulatory approval, Canada has already taken action. The 3iQ XRP ETF recently launched and quickly amassed $32 million in assets under management (AUM), demonstrating clear demand for regulated exposure to XRP.
This success serves as a model for what could happen in the United States if the SEC gives the green light. Canadian investors now have a secure, transparent way to gain exposure to XRP without holding the asset directly—exactly the kind of product U.S. retail and institutional investors are seeking.
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Core Keywords Integration
This evolving landscape revolves around several key themes: XRP ETF, Ripple SEC lawsuit, BlackRock crypto ETF, spot XRP ETF, cryptocurrency regulation, institutional adoption of XRP, XRP price prediction, and digital asset investment. These terms reflect both investor search intent and the broader narrative driving market interest.
As regulatory clarity improves and major financial institutions explore new product offerings, these keywords will continue to gain traction in financial discourse and online searches.
Frequently Asked Questions (FAQ)
Q: Has BlackRock officially announced plans for an XRP ETF?
A: No, BlackRock has not made any official announcement regarding an XRP ETF. However, growing speculation—fueled by Ripple’s legal resolution with the SEC—suggests it could be under consideration.
Q: What impact did the Ripple vs. SEC case have on XRP ETF prospects?
A: The lawsuit created significant regulatory uncertainty, which deterred asset managers from launching XRP products. Its resolution removes a major barrier, making an ETF much more likely.
Q: Is XRP considered a security after the court rulings?
A: The 2023 ruling determined that XRP itself is not inherently a security, especially when traded on public exchanges. This distinction is crucial for ETF approval.
Q: How does the 3iQ XRP ETF in Canada affect U.S. prospects?
A: It demonstrates strong investor demand and provides a working model for how a regulated XRP fund can operate—potentially influencing SEC decision-making.
Q: What would an approved XRP ETF mean for retail investors?
A: It would offer a secure, accessible way to invest in XRP through traditional brokerage accounts, without needing to use cryptocurrency exchanges.
Q: When could a U.S.-based XRP ETF be approved?
A: While no official timeline exists, analysts predict approval could happen within 12–18 months following Ripple’s legal resolution, assuming favorable regulatory conditions.
The Road Ahead: Institutional Adoption Accelerates
With Ripple now focusing entirely on building the “internet of value,” as CEO Brad Garlinghouse stated, attention turns to how traditional finance will respond. The combination of favorable court rulings, increasing institutional interest, and proven market demand creates a compelling case for an XRP ETF.
If BlackRock enters this space—as many expect—it could catalyze a new wave of innovation and adoption across the digital asset ecosystem. For investors, regulators, and financial institutions alike, the post-litigation era presents both opportunity and responsibility.
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