- Ripple President Monica Long highlights XRP’s regulatory clarity and substantial trading volumes as pivotal factors supporting the probability of XRP ETF in the future.
- District Judge Amy Berman Jackson’s recent alignment with Judge Torres’ ruling on XRP and her dismissal of the SEC’s arguments in the Binance versus SEC case mark significant legal victories for the cryptocurrency industry.
ETFs have become the central topic in the crypto space in 2024 as crypto asset holders speculate on the potential price impact of institutional capital inflows into their favorite coins.
Following the SEC’s recent approval of Bitcoin and Ethereum ETF applications, supporters of other crypto projects, including the XRP community, are advocating for their own ETFs, per Crypto Key News report. Adding to these demands, Ripple President Monica Long has made a case for XRP ETFs in a recent interview.
Long stated, “I think it would be very sensible for someone to launch an XRP ETF.” During the interview, she emphasized the asset’s impressive longevity and high trading volumes on leading exchanges as key factors supporting the launch of XRP ETFs. She further added:
XRP has been trading within the top 10 for how long? Maybe its entire life. And on the top exchanges like Coinbase and Kraken, it’s certainly in the top five of daily volume.
Additionally, Long pointed out that XRP and Bitcoin are the only crypto assets with regulatory clarity in the U.S., referencing the July 2023 court ruling in the SEC case against Ripple that determined XRP is not a security.
Long’s remarks mirror those of Ripple CEO Brad Garlinghouse, who earlier this month stated that XRP ETFs are “inevitable.” However, despite the optimism from Ripple executives, several experts believe that more altcoin ETFs may still be years away.
The Importance of Having XRP ETFs
According to experts such as ETF Store President Nate Geraci and Senior Bloomberg Analyst James Seyffart, the launch of ETFs linked to altcoins like XRP and Solana faces several prerequisites that may span several years. These prerequisites include establishing and commencing a CFTC-regulated futures market for these assets.
However, there’s a recent twist in the tale that could probably improve the odds of an XRP ETF. District Judge Amy Berman Jackson has aligned with Judge Torres’ ruling on XRP regarding programmatic and secondary sales in significant development for the cryptocurrency industry.
Additionally, in the case of Binance versus the SEC, Judge Jackson has dismissed the SEC’s contention regarding secondary sales of BNB tokens by entities other than Binance. This decision underscores judicial clarity on the classification of crypto assets under the Howey Test criteria for investment contracts.
Ripple has certainly set a precedent in the crypto industry while diligently tackling the SEC’s claims over the past four years. However, the XRP price has been under constant selling pressure, and recently, it has also slid under $0.50, per the crypto Key News report. As of press time, XRP is trading 1% down at $0.4757 with a market cap of $26.4 billion.
