According to CryptoPotato, the approval of spot Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Funds (ETFs) in the US has sparked speculation about the possible launch of a spot XRP ETF. Ripple's CEO, Brad Garlinghouse, has suggested that such a development is 'inevitable.' However, the ongoing legal dispute between Ripple and the Securities and Exchange Commission (SEC) over allegations of unregistered securities offerings could hinder the approval of such a financial product.
The cryptocurrency market has been thriving since the start of 2024, with BTC reaching a new all-time high of over $73,700 in mid-March and currently trading well above the $70K mark. This success is partly due to the historic launch of certain financial products, such as spot BTC ETFs, which received SEC approval in January. In the following month, the agency also approved spot ETH ETFs. These financial instruments allow investors to gain exposure to digital assets without having to buy them directly from exchanges, simplifying the investment process and reducing some risks associated with handling cryptocurrencies.
In recent months, there has been speculation that a spot XRP ETF could also be launched in the US. Ripple's CEO, Brad Garlinghouse, has stated that such a product, along with SOL ETFs and ADA ETFs, is 'inevitable.' He reiterated his stance, suggesting that investors want exposure to a variety of ETFs, not just those with Bitcoin and Ethereum as underlying assets.
However, the SEC, the agency responsible for approving or rejecting such financial products in the US, and Ripple are currently embroiled in a legal dispute. The conflict began in December 2020 when the SEC accused Ripple and some of its executives of illegally raising over $1.3 billion in an unregistered securities offering by selling XRP. Ripple won three partial court victories last year, and some believe it has the advantage for a decisive win. The resolution of the case could trigger increased volatility in XRP's price.