Expert Insights on Ripple’s Legal Developments and Their Impact on XRP ETFs
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Nate Geraci’s Perspective on Ripple’s Legal Move and Its Implications for XRP ETFs
Nate Geraci, the esteemed president of the ETF Store, has shared his insights on the ramifications of Ripple’s strategic decision to withdraw its cross-appeal. This move could significantly influence the future of XRP Exchange-Traded Funds (ETFs). Geraci also speculates about BlackRock potentially entering the ETF arena following the resolution of the lawsuit.
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The Significance of Ripple’s Withdrawal of Its Cross Appeal
In a recent statement on social media platform X, Nate Geraci expressed that resolving the XRP lawsuit could pave the way for the introduction of a spot XRP ETF. His analysis suggests that the Securities and Exchange Commission (SEC) might now be inclined to approve applications from issuers aiming to offer this particular fund. Geraci’s comments were in response to Ripple CEO Brad Garlinghouse’s public announcement regarding Ripple’s choice to drop its cross-appeal against the SEC.
According to Bitcoinist, Garlinghouse confirmed Ripple’s decision to halt its cross-appeal, with expectations that the SEC will reciprocate by dropping its appeal, thereby concluding the XRP litigation. He emphasized their focus on advancing the Internet of Value. Earlier this year, Bloomberg analyst James Seyffart highlighted the lawsuit’s impact on the potential for an XRP ETF.
Seyffart noted via X that an XRP ETF would likely not materialize until the SEC and Ripple resolved their legal dispute. He emphasized the necessity for the SEC to “untangle that mess” before any ETF approvals. To date, the SEC has delayed decisions on these funds and has not issued any official commentary.
This stands in contrast to Solana ETFs, for which the SEC has advised issuers to make amendments in anticipation of approval. However, once the SEC dismisses its appeal and formally concludes the XRP lawsuit, communication with XRP ETF issuers regarding subsequent actions could commence.
Potential for BlackRock to Enter the XRP ETF Market
Nate Geraci also noted that the conclusion of the XRP lawsuit could open the door for BlackRock, the world’s largest asset manager, to submit filings for an XRP ETF. While BlackRock already offers Bitcoin and Ethereum ETFs, it has not yet ventured into other cryptocurrency ETFs, including XRP.
This approach differs from other firms like Bitwise, which has filed for ETFs covering a range of cryptocurrencies, including XRP, Solana, and Dogecoin. According to Geraci’s projections, BlackRock might soon join this trend by filing for an XRP ETF. Should they proceed, BlackRock would become the eighth entity to make such a filing. Bloomberg analysts Seyffart and Eric Blachunas estimate a 95% probability that the SEC will approve these funds within the year.
At present, XRP is trading at approximately $2.19, reflecting a rise over the last 24 hours, as per CoinMarketCap data.
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