XRP ETF Approval Timeline Emerges as Ripple's Legal Victories Revitalize Market Optimism

The landscape of cryptocurrency investment is evolving rapidly, and one digital asset is capturing headlines like never before. While Bitcoin and Ethereum have long dominated the institutional scene, a new contender is stepping into the ring, promising to reshape the crypto market's future.

Fresh legal developments have brought XRP back into the spotlight, with recent filings aiming to pave the way for a Ripple (XRP) exchange-traded fund (ETF). Here's a closer look at the latest news and what it means for XRP in the coming months.

As institutional interest in cryptocurrency continues to grow, so does the demand for regulated investment vehicles like ETFs. In a recent move, Bitwise Asset Management has filed for an XRP ETF with the U.S. Securities and Exchange Commission (SEC). This filing comes after institutional interest in XRP surged in 2022.

If approved by the SEC, the Bitwise XRP ETF would provide investors with a new way to gain exposure to the performance of XRP without purchasing the token directly. This could significantly broaden the institutional participation in the XRP market.

However, the approval process for any ETF is typically lengthy and involves several steps. According to legal expert Jeremy Hogan, ETF approvals usually take six to twelve months, suggesting a potential mid-2025 approval date if the SEC's current appeal progresses as expected.

This timeline is closely tied to the ongoing legal battle between Ripple Labs and the SEC, which could impact the approval of an XRP ETF. In December 2020, the SEC filed a lawsuit against Ripple, alleging that its sales of XRP constituted unregistered securities offerings.

A U.S. court later ruled that while sales to institutional investors breached securities laws, secondary market sales did not. The SEC is currently appealing parts of this decision, with a review set for January 2025.

Bitwise's filing also lists the SEC as a significant risk factor for investors, highlighting the regulatory hurdles that still exist for XRP and other digital assets. Despite these challenges, Bitwise’s Chief Investment Officer Matt Hougan expressed optimism regarding the XRP ETF filing.

According to Hougan, the firm only submits ETF applications when a viable path to approval is evident. He also noted XRP's strong community backing and technological robustness, which make it a compelling asset for institutional investors.

Ripple's recent legal successes have also fueled market optimism for XRP. The court's decision in favor of Ripple Labs and its executives has set a precedent that could influence the SEC's stance on cryptocurrency regulations.

This ruling concluded that the SEC failed to provide fair notice to Ripple that its sales of XRP were securities offerings and that the court has the authority to decide whether the sales were exempt from registration at a later stage in the lawsuit.

After the SEC filed a motion to dismiss the lawsuit, arguing that the court lacks jurisdiction over the SEC's administrative actions, the court denied the motion, allowing the lawsuit to proceed. These developments come amid broader market speculation about regulatory shifts in the United States.

Some analysts predict that changes in the SEC's leadership or policy direction could lead to a more favorable environment for crypto assets like XRP. The anticipation of a more crypto-friendly regulatory framework adds fuel to the optimism surrounding XRP's potential ETF approval.

Moreover, the interest in XRP ETFs isn't isolated. Firms like Canary Capital and 21Shares have also submitted applications for an XRP ETF, indicating a growing institutional appetite for XRP-based investment products. This collective move underscores the token's increasing legitimacy in the eyes of traditional financial institutions.

The possibility of an XRP ETF has also had a positive impact on the token's market performance, with XRP experiencing increased trading volumes and price appreciation. The convergence of legal clarity and institutional interest positions XRP as a frontrunner in the next wave of crypto adoption.

On the Flipside

Why This Matters

An XRP ETF would provide institutional and retail investors with regulated, accessible exposure to XRP, potentially increasing liquidity and market stability. For Ripple and its community, it validates years of technological development and legal efforts, positioning XRP as a significant player in the future of digital finance.