Ripple’s President, Monica Long, believes that the regulatory clarity surrounding XRP and its significant trading volumes make it highly likely that an XRP ETF will be launched in the future. This comes after District Judge Amy Berman Jackson’s recent ruling in favor of XRP in the Binance versus SEC case, which is seen as a major legal victory for the cryptocurrency industry.
The cryptocurrency community has been buzzing about ETFs in 2024, as investors speculate on the potential impact of institutional investors pouring capital into their favorite coins. With the recent approval of Bitcoin and Ethereum ETF applications by the SEC, supporters of other crypto projects, including the XRP community, are now advocating for their own ETFs.
During a recent interview, Ripple’s President, Monica Long, made a case for XRP ETFs, stating that it would be a sensible move to launch one. She highlighted XRP’s long-standing presence within the top 10 cryptocurrencies and its high trading volumes on exchanges like Coinbase and Kraken as key factors supporting the launch of an XRP ETF. Furthermore, Long pointed out that XRP and Bitcoin are the only crypto assets with regulatory clarity in the U.S., thanks to a court ruling in July 2023 that determined XRP is not a security.
Long’s comments echo those of Ripple’s CEO, Brad Garlinghouse, who recently stated that XRP ETFs are inevitable. However, despite the optimism from Ripple executives, experts believe that it may still take several years before more altcoin ETFs are launched. Nate Geraci, President of ETF Store, and James Seyffart, Senior Bloomberg Analyst, argue that prerequisites such as establishing a CFTC-regulated futures market for these assets need to be met before altcoin ETFs can become a reality.
However, there is a recent development that could improve the chances of an XRP ETF. District Judge Amy Berman Jackson’s alignment with Judge Torres’ ruling on XRP regarding programmatic and secondary sales is a significant step forward for the cryptocurrency industry. Additionally, in the Binance versus SEC case, Judge Jackson dismissed the SEC’s argument regarding secondary sales of BNB tokens by entities other than Binance. This decision provides further clarity on the classification of crypto assets under the Howey Test criteria for investment contracts.
Ripple has been at the forefront of the crypto industry, fighting the SEC’s claims for the past four years. However, despite their efforts, the price of XRP has been under constant selling pressure and recently dropped below $0.50. As of now, XRP is trading 1% down at $0.4757, with a market cap of $26.4 billion.