Ripple and the SEC: A Legal Battle Concludes
The lengthy legal conflict between Ripple and the U.S. Securities and Exchange Commission (SEC) has officially reached its conclusion, as both parties have mutually agreed to file a joint dismissal. Although the courtroom drama has ended, the conversation about Ripple’s future and the digital currency XRP remains vibrant and ongoing.
BlackRock and the Ripple Speculation
The financial world is abuzz with speculation, centered around BlackRock, the globe’s largest asset manager. The big question on everyone’s lips is whether BlackRock will take the leap and file for a spot XRP exchange-traded fund (ETF).
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Is a New XRP ETF on the Horizon?
Many financial analysts express optimism regarding the potential for BlackRock to venture into XRP ETFs. Nate Geraci, president of The ETF Store, suggests that the timing is perfect for BlackRock to diversify beyond its current focus on Bitcoin (BTC) and Ethereum (ETH).
“Yes, I think BlackRock was waiting to see this before filing for iShares XRP ETF… I’ll own it if I’m wrong. IMO, it makes zero sense for them to ignore crypto assets beyond BTC & ETH. Otherwise, they’re basically saying BTC & ETH are the only ones that will ever have value. Bold.” — Nate Geraci
Echoing this sentiment, Eric Balchunas, Senior ETF Analyst at Bloomberg, remains optimistic, assigning a 95% likelihood to the approval of an XRP ETF. This is despite a recent dip in approval odds reported by the market prediction platform Polymarket.
“Interesting trades reporting how Polymarket odds of XRP ETF approval went down to 62% after the votes were disclosed showing Crenshaw voting no, but a) she’s gonna vote no on EVERYTHING and b) it’s meaningless, she’s outnumbered = we haven’t changed our odds, still at 95%.” — Eric Balchunas
Legal and Market Dynamics
Despite the optimism, there are still legal hurdles to navigate. For example, Ripple faces a $125 million fine that remains in escrow, pending the formal withdrawal of appeals by both parties.
However, the market is teeming with signs that are difficult to dismiss. A new spot ETF could potentially unlock large swaths of institutional capital. Notably, Bitcoin ETFs alone have attracted $222 billion in assets under management (AUM) since 2024.
Furthermore, Canada’s Purpose XRP ETF has already witnessed $37 million in inflows upon launch. The Polymarket approval rate for a Ripple ETF in the U.S. has surged to 87%, up by 25% since Balchunas’s remarks. Additionally, futures open interest has risen by 36% to $4.91 billion, indicating heightened trader anticipation.
Conclusion
As Ripple’s legal entanglements with the SEC draw to a close, the financial community’s focus shifts to the potential implications of a new XRP ETF. Whether or not BlackRock decides to proceed with such an offering remains to be seen, but the anticipation is palpable, and the market is poised for potential transformation.
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