The settlement of the years-old legal dispute between the US Securities and Exchange Commission and Ripple, a prominent cryptocurrency company, has significantly increased market confidence that a XRP ETF will be approved by the regulator in 2025.

Polymarket bettors suggest that there is a 84% probability of a XRP ETF approval in 2025. Here is everything you should know about the development. Read on!

The US Securities and Exchange Commission (SEC) and cryptocurrency company Ripple have reached a settlement in their long-standing legal dispute.

This development has significantly increased market confidence that an eXpert (XRP) ETF will be approved by the regulator in 2025.

Polymarket bettors suggest that there is an 84% probability of an XRP ETF approval in 2025.

Here is everything you should know about the development.

Why Does XRP ETF Approval Look Likely?

The major barrier, which prevented financial institutions from adopting XRP, has been completely dismantled with the settlement of the legal dispute between the SEC and Ripple.

This is because, in December 2020, the SEC filed a lawsuit against Ripple, claiming that the cryptocurrency company had sold unregistered securities through its XRP token.

After years of litigation, the two parties have finally reached a settlement.

According to the settlement, no party will admit or deny the other’s claims.

Moreover, the SEC will not pay any penalties to settle the case.

Instead, the cryptocurrency company will pay a $1.5 million settlement for claims that it broke antitrust law with an attempt to influence a former SEC official.

The case began when an SEC official allegedly tried to contact an official at the Ministry of Finance in an attempt to get the U.S. government involved in shutting down cryptocurrency firm.

However, the Ministry of Finance official said that the attempt to get in touch with them was “odd” and “unnecessary.”

Experts predict that an XRP ETF could drive institutional adoption, potentially pushing prices as high as $29 by the decade’s end.

What’s Next For XRP?

The ETF Store president Nate Geraci asserts that an XRP ETF approval will definitely happen.

He predicts that BlackRock (NYSE:) and Fidelity will play a prominent role in the XRP ETF sector.

Earlier, BlackRock ETF Department Head Jay Jacobs strongly denied rumours that the organisation is considering altcoins like XRP.

However, experts believe that the newly evolved regulatory scenario will encourage top players, like BlackRock, to reconsider their stance.

If the SEC approves XRP ETFs, financial giants like BlackRock and Fidelity could bring more institutions into the market.

This would increase XRP’s legitimacy and institutional usage.

What Could Happen if XRP Falls Below Crucial Level?

Acclaimed cryptocurrency trader Peter Brandt warns that if the XRP falls below key levels, the XRP market could drop to $1.07.

Meanwhile, he notes that if the market remains above the crucial market of $3, it will be unwise to sell this token.

However, Bitwise predicts that if XRP captures a good share of the payments and tokenisation sectors, the XRP market could rise to as high as $29.32 by the end of this decade.