Approaching deadlines for spot XRP ETF applications from major asset managers, including Grayscale, Franklin Templeton, and Bitwise, are sparking excitement and speculation within the crypto community. The potential approval of these ETFs by the SEC is of particular interest, especially in light of Ripple’s proposed legal settlement with the regulator.
The prediction platform Polymarket saw a surge in odds for an approval by 2025, reaching as high as 98% in early June. However, in the past week, these odds have slightly dropped to 88%. While there are still regulatory hurdles to overcome, the resolution of the SEC lawsuit against Ripple has removed one of the major legal obstacles, pending final court approval.
The legal uncertainty surrounding XRP stemmed from the SEC’s allegations that XRP was an unregistered security. Despite Ripple and the SEC reaching a $50 million settlement in March, the agreement hit a roadblock in May when Judge Analisa Torres rejected a motion to amend the final judgment. The parties have since pursued a limited remand through the Second Circuit, putting their appeals on hold for 60 days. As of mid-June, the settlement is still pending finalization, keeping the case technically open.
While both parties have indicated their intent to drop appeals as part of the settlement, these steps are still in progress and contingent on further court actions. Judge Torres’s 2023 ruling, which clarified the nature of XRP distributions, remains a crucial point of reference. The SEC is expected to submit a procedural status report to the U.S. Court of Appeals by June 16, but this update is unlikely to determine the case’s outcome or confirm settlement approval.
The XRP community is eagerly anticipating the potential approval of an XRP ETF, with some predicting a significant price rally for the asset. However, analysts caution that such projections are speculative and market sentiment-dependent. The post-ETF approval performance of Bitcoin and Ethereum serves as a cautionary tale, with the possibility of a sharp correction following initial price excitement.
In addition to the ETF speculation, XRP is also making strides in institutional adoption. CME Group recently launched XRP futures contracts, providing a regulated platform for derivatives trading. Several corporations have announced plans to allocate funds to their corporate treasuries for XRP use in payments and reserves. The XRP Ledger is also being utilized for real-world asset tokenization, showcasing the asset’s growing institutional relevance.
As the SEC faces a new decision deadline on June 17 for Franklin Templeton’s spot XRP ETF application, the XRP community remains hopeful for a positive outcome. The milestones and events surrounding the XRP ETF and SEC legal proceedings highlight the ongoing developments in the XRP ecosystem, setting the stage for potential growth and adoption in the future.
This article was originally posted on Cryptoslate and covers topics related to XRP, ETFs, legal issues, and tokens.