Legal expert Jeremy Hogan has shed light on the potential timeline and implications of an $XRP exchange-traded fund (ETF) approval by the U.S. Securities and Exchange Commission (SEC). His analysis comes amidst growing anticipation following Bitwise Asset Management’s October filing for an XRP ETF and ongoing regulatory developments.
Insights on the XRP ETF Approval Timeline
Jeremy Hogan, a prominent pro-XRP attorney, shared that the approval process for cryptocurrency ETFs typically spans six to twelve months. If the SEC’s appeal regarding its case against Ripple progresses as expected, Hogan predicts a potential mid-2025 approval date for the XRP ETF.
Bitwise XRP ETF Filing:
Filed in October 2024, the application highlights the SEC’s regulatory stance as a significant risk factor for investors.
ETF applications usually follow a standard timeline, with decisions issued within a year, pending any extraordinary delays.
The SEC’s Appeal and Its Implications
The SEC’s appeal is tied to its ongoing lawsuit against Ripple Labs, which began in December 2020. The case alleges that Ripple’s XRP sales to institutional investors violated securities laws, although a U.S. court ruled that secondary market sales did not constitute securities offerings.
Appeal Timeline: The SEC’s appeal is set for review in January 2025.
Hogan’s View: He anticipates the appeal outcome will significantly influence the timeline for XRP ETF approval, projecting a possible decision by summer 2025.
Bitwise’s Confidence in an XRP ETF
Bitwise Chief Investment Officer Matt Hougan expressed confidence in the ETF filing, emphasizing:
1. Path to Approval: Applications are submitted only when the firm identifies a viable route to SEC approval.
2. Community and Technology: XRP’s strong community support and technological advancements bolster its case despite regulatory hurdles.
Other firms, including Canary Capital and 21Shares, have also filed XRP ETF applications, underscoring the growing demand for crypto-based investment products.
Ripple’s Legal Wins and Market Optimism
Recent legal victories for Ripple Labs, including favorable rulings for CEO Brad Garlinghouse, have bolstered investor confidence. Increased trading activity and market interest in XRP highlight optimism about the asset’s long-term potential.
Regulatory Outlook:
President-elect Donald Trump’s pro-crypto stance has raised expectations for a more favorable regulatory environment.
Speculation suggests SEC Chair Gary Gensler may step down, further fueling optimism.
What’s Next for XRP and the ETF Market?
Ripple’s CEO Brad Garlinghouse recently stated that an XRP ETF is “inevitable,” reinforcing community expectations. The approval of an XRP ETF could:
1. Boost Market Sentiment: Mirroring the positive impact seen with Ethereum ETF approvals.
2. Expand Utility and Value: An ETF could drive wider adoption and significantly increase XRP’s market value.
Conclusion
The potential approval of an XRP ETF remains tied to the outcome of the SEC’s appeal and broader regulatory developments. While challenges persist, Ripple’s legal victories and strong community backing set a promising stage for future growth. If approved, an XRP ETF could significantly enhance the asset’s market potential and solidify its position in the cryptocurrency landscape.