Ripple and the US Securities and Exchange Commission (SEC) have officially put an end to their lengthy legal battle that began in December 2020. In a joint filing on Aug. 7, both parties agreed to withdraw their appeals after a Commission vote. Ripple’s Chief Legal Officer, Stuart Alderoty, announced that XRP will not be classified as a security under the settlement terms, and each side will bear its own legal costs. This resolution is a significant victory for Ripple, aligning it with other cryptocurrency companies like Coinbase that have settled disputes with the SEC.
The news of the settlement has sparked speculation about the possibility of a BlackRock XRP exchange-traded fund (ETF). BlackRock, the world’s largest asset manager, already offers ETF products linked to Bitcoin and Ethereum. Nate Geraci, president of NovaDius Wealth, suggested that BlackRock may have been waiting for legal clarity before considering an XRP product under its iShares brand. He argued that overlooking assets beyond Bitcoin and Ethereum could imply that no other cryptocurrencies hold long-term value.
However, not everyone shares Geraci’s optimism about a potential BlackRock XRP ETF. Bloomberg Senior ETF Analyst Eric Balchunas expressed skepticism, stating that he believes BlackRock is satisfied with its current two crypto ETFs. He mentioned the “law of diminishing returns” as a factor for not adding more products, although he admitted his opinion was more based on intuition than concrete evidence.
Despite Balchunas’ doubts about BlackRock pursuing an XRP ETF, he remains positive about the overall regulatory landscape. He estimated a 95% chance of an XRP ETF receiving approval before the end of the year.
In response to the settlement, the price of the XRP token surged by over 10% to $3.33. This development marks a significant milestone for Ripple and sets the stage for potential growth and expansion in the cryptocurrency market. The resolution of this legal dispute may pave the way for further innovations and partnerships within the industry.