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- After the introduction of Spot Bitcoin ETFs, BTC surged to new all-time highs, this raises the question of whether an XRP ETF could similarly push the XRP token to a $20 high.
- The SEC has up to 240 days to respond to an S-1 filing for an ETF by Canary Capital, a leading digital asset and crypto fund management firm.
The approval of Bitcoin and Ethereum exchange-traded funds (ETFs) marked the dawn of a new era for the cryptocurrency landscape earlier this year. Their approval sparked speculation regarding which other cryptocurrency ETFs might be granted regulatory approval next. Well, Ripple is next in line for an XRP ETF, this move could potentially, drive the price of XRP to $20 and increase its adoption.
Canary Capital, a cryptocurrency investment firm headed by former Valkyrie Chief Investment Officer Steven McClurg, submitted an application to the SEC to create ITS “Canary XRP ETF,”. This marks the second request for an XRP ETF in the US following an earlier proposal by Bitwise. The XRP community has been advocating for asset managers, particularly industry leader BlackRock, to introduce an XRP ETF, as they believe such a product could enhance the value of XRP by making it more accessible to institutional investors.
After years out of office, Donald Trump, the 45th president of the United States is once again a resident at the white house after winning the 2024 US elections against Kamala Harris. Trump’s victory propelled Bitcoin to hit a new all-time high, cresting at $75,395. Other cryptocurrencies followed suit such as Dogecoin spiking by more than 20 %. With the increased optimization within the crypto community, long-standing lawsuits filed against crypto companies and their unclear regulations about securities are meant to be streamlined.
SEC Lawsuit Holds Back Ripple’s Growth
In 2020, when the SEC filed a lawsuit against Ripple, it marked the beginning of challenges and turmoil for the cryptocurrency, sparking widespread uncertainty within the market. The SEC claimed that Ripple Labs sold XRP as an unregistered security.
Crypto analyst Luke Thomas believes that the settlement of this lawsuit will allow Ripple to sell directly to institutions only if they agree to the settlement of a multi-million dollar fine of $125 million. In an X post, the analyst states that Ripple Labs could finally launch its RLUSD stablecoin commercially for public use and Trading. For reference, CNF reported in October that Ripple partnered with several global exchanges and platforms to distribute its new digital asset, RLUSD.
In relation to this, the president-elect pledged to dismiss SEC Chair Gary Gensler, who has been at the forefront of the U.S. government’s efforts to regulate the crypto sector. This move could potentially help resolve the ongoing dispute and boost the price of XRP. Thomas believes that the current legal struggles are hindering Ripple’s aspirations for an IPO.
Once a settlement is reached, Ripple plans to reveal its intentions for an initial public offering, targeting a public listing by the end of 2025. This IPO is anticipated to attract significant investment and strengthen Ripple’s status as a top financial technology firm.
In the analyst’s 9-month roadmap, Ripple’s vast international business is well-positioned to become the first double-digit trillion-dollar crypto company once U.S. crypto regulations are in place. Ripple’s trading volume has increased by 5.80% over the last 24 hours with a market cap of $ 31.58 billion. Despite its 0.39% price drop in the last hour, XRP is currently trading at $0.5547.
