The recent conclusion of the legal battle between Ripple Labs and the US SEC marks a significant turning point in the cryptocurrency landscape. After nearly five years of deliberations, the parties involved have reached an agreement. A joint filing with the Second Circuit Court of Appeals confirmed that both Ripple and the SEC decided to withdraw their appeals, effectively solidifying Judge Analisa Torres’s ruling from 2023.
This resolution has positively impacted the market, with XRP’s value surging past $3 once more. Market analysts, including Nate Geraci, have speculated that this development could pave the way for BlackRock to file for an iShares XRP ETF, indicating a pivotal moment in asset management.
Potential Shifts in the ETF Landscape
The conclusion of the court case has reignited conversations regarding the possibility of BlackRock launching a Spot XRP ETF. Nate Geraci highlighted that prioritizing only Bitcoin and Ethereum is shortsighted given the rapid evolution of other cryptocurrencies. He emphasized that ignoring the broader cryptocurrency market is unwise.
BlackRock has already seen tremendous success with its Spot Bitcoin and Ethereum ETFs, making an XRP ETF seem like the next logical step, especially as XRP ranks as the third-largest cryptocurrency by market capitalization. An XRP ETF could drastically alter price dynamics for this digital asset, potentially boosting its long-term viability.
Currently, BlackRock leads the pack in terms of assets under management in its Bitcoin and Ethereum ETFs. The firm’s iShares Bitcoin Trust (IBIT) boasts impressive inflows and manages approximately $86.53 billion in assets, while the iShares Ethereum Trust has secured about $12.35 billion in assets, indicating strong investor interest in these digital currencies.
Analyzing ETF Approval Prospects
Recent analyses from platforms like Polymarket show a rising optimism for the approval of an XRP ETF, currently estimated at 76%. However, experts caution restraint. Eric Balchunas, an ETF analyst at Bloomberg, expressed skepticism about immediate plans from BlackRock, highlighting that the asset manager may be content with its existing crypto product range. He suggested that they are unlikely to file for an XRP ETF this year.
Despite the current hesitance, BlackRock maintains flexibility in its strategic options. A spokesperson from the firm stated recently that while they do not have plans for an XRP ETF at this moment, the future remains open-ended.
Following the legal settlement news, XRP’s price experienced a notable surge, increasing by over 11%. The price surged from $3.04 to $3.36 shortly after the announcement, reflecting strong investor sentiment. As of now, XRP is trading around $3.32, demonstrating resilience and potential for future growth.
