XRP ETF Approval Path Finally Clears as Trump Returns to the Oval Office

The crypto world is abuzz with anticipation following the unexpected turn of events in the 2024 U.S. presidential election.

The 2024 U.S. presidential election has taken an unexpected turn with the return of Donald Trump to the Oval Office. As a shift in leadership often brings changes in policy, digital asset enthusiasts are paying close attention to the new administration’s stance on cryptocurrencies.

With the prospect of regulatory reforms, a burning question arises: how does the new government influence the possibility of an XRP exchange-traded fund (ETF) gaining approval?

After Trump's win, discussions about the regulatory landscape for cryptocurrencies in the United States have resurfaced. Known for his pro-business policies, the Trump administration is widely anticipated to take a more lenient approach toward digital assets than the previous administration.

This shift could be crucial for XRP and its pursuit of ETF approval. The Swiss ETF issuer 21Shares had earlier filed an S-1 form with the Securities and Exchange Commission (SEC) to launch an XRP ETF. During the previous administration, the approval seemed uncertain due to close regulatory examination.

However, industry experts believe that the SEC might adopt a more accommodating stance with Trump's victory. Earlier, The ETF Institute President, Nate Geraci, had noted that the election outcome would greatly impact the future of crypto ETFs.

“A Trump administration could finally mean a friendlier crypto environment in which ETF innovation accelerates,” he remarked.

This sentiment aligns with many crypto community members who anticipate that regulatory obstacles could be reduced, allowing for faster approval of ETFs that include assets like XRP. Ripple’s CEO, Brad Garlinghouse, has expressed optimism about the inevitability of an XRP ETF.

The approval would provide American investors with greater exposure to XRP, potentially boosting demand and price. According to analysts, Ripple's price could reach $1.57 by 2025 with the introduction of the ETF.

Another development that could benefit XRP is Grayscale's application for an exchange-traded fund that would track a diversified basket of cryptocurrencies, including XRP. The SEC is currently reviewing the application, which would mark the first multi-asset crypto ETF approved for trading on a national securities exchange.

Grayscale’s GDLC Fund, which is up for grabs, is overseen by the apex asset manager and boasts a portfolio that includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and XRP. The new administration's potential crypto-friendly policies may benefit XRP and other digital assets awaiting regulatory approval.

Furthermore, the appointment of new SEC leadership under the Trump administration could introduce fresh perspectives to the regulatory body. The crypto industry has frequently criticized the SEC's stringent approach, which stifles innovation. A shift toward a more balanced regulatory framework could address these concerns, promoting growth and innovation within the sector.