Ripple Labs and SEC Settle Landmark Case: What It Means for XRP
The longstanding legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reached its conclusion after almost five years of intense legal proceedings. In a joint filing with the Second Circuit Court of Appeals, both parties agreed to dismiss their appeals, finalizing Judge Analisa Torres’s ruling from 2023. This resolution has already sparked a significant surge in XRP’s value, pushing it above the $3 mark once again. Market analyst Nate Geraci has even speculated that this settlement might prompt BlackRock to explore the possibility of launching an iShares XRP ETF.
Potential BlackRock Strategy: Launching an XRP ETF
The conclusion of the Ripple and SEC lawsuit has fueled speculation about BlackRock, the world’s largest asset manager, potentially introducing a Spot XRP ETF. Nate Geraci, president of The ETF Store, expressed on social media platform X that BlackRock might have been waiting for the lawsuit’s resolution before considering an iShares XRP ETF.
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Geraci argued, “It makes no sense for them to ignore crypto assets beyond Bitcoin and Ethereum.” He emphasized that focusing solely on these two cryptocurrencies overlooks the broader potential of the altcoin market, especially given recent price movements. Considering BlackRock’s success with their Spot Bitcoin and Spot Ethereum ETFs, an XRP ETF appears to be a logical progression. Such a move could significantly impact XRP’s market performance.
Currently, BlackRock holds the largest share of assets in both U.S. Bitcoin and Ethereum ETFs. The company’s Spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), leads in inflows with $86.53 billion in net assets. Additionally, their iShares Ethereum Trust has swiftly become the leading Ethereum ETF, amassing $12.35 billion in net assets.
Prospects for an XRP ETF: A Mixed Outlook
The prediction market Polymarket estimates a 76% chance of an XRP ETF approval, although this percentage has fluctuated, reaching as high as 88.7% on August 8. However, Bloomberg’s ETF analyst Eric Balchunas urges caution. Responding to Geraci’s comments, Balchunas suggested that BlackRock might be content with its current crypto offerings and does not anticipate a new filing this year. The long-term potential, however, remains uncertain.
BlackRock appears to be in no hurry to expand its ETF portfolio. A company spokesperson informed The Block that there are no immediate plans for a Spot XRP ETF or one for Solana. Nonetheless, this does not imply a permanent closure to such opportunities in the future.
The news of the lawsuit settlement has triggered a more than 11% increase in XRP’s value. Following the announcement, the altcoin’s price climbed from $3.04 to $3.36 within hours. As of this writing, XRP is trading at $3.32.
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