With two crypto-based exchange-traded funds arriving this year, Ripple’s settlement with the US Securities and Exchange Commission (SEC) could open the door to an XRP ETF. Indeed, the firm ended its years-long legal battle with the regulator. Now, the token could be poised for the investment product.
The settlement did appear to be in favor of the blockchain company. Ripple Labs was ordered to pay $125 million, which was greatly reduced from the financial penalty that the SEC sought. Specifically, they wanted the firm to pay nearly $2 billion in the lawsuit that was first filed in 2020.
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Ripple Could Eye an XRP ETF With SEC Lawsuit In the Rear View Mirror
2024 has proven to be a massive year for crypto. Both Bitcoin and Ethereum broke new ground with ETF approvals in the first half. Moreover, the industry has been on an upward trajectory. Its momentum was enough to aid many tokens in swiftly recovering from the market crash that took place Monday.
Now, after BTC and ETH, all eyes are on what cryptocurrency could be next. With Ripple and the SEC reaching a long-awaited settlement, we may be on our way to an XRP ETF. For many, Solana is the obvious choice. Yet, there is no denying the benefit XRP receives from regulatory clarity.
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The lawsuit does provide cautious investors with something few cryptos can give them: confidence. Crypto analyst Doctor Profit took to X (formerly Twitter) to discuss that very topic. Specifically, how the lawsuit ensures that investor funds are safe with XRP.
“This aligns perfectly with my ETF approval ranking prediction: first BTC, second ETH, and third XRP- not SOL, as some have claimed,” the user said. “Today’s [Ripple vs. SEC] decision is hugely bullish. Big investors who have been scared due to the lawsuit can now enter into XRP without fear.”
Although Solana is likely to get an ETF, XRP has certainly entered the conversation. However, it may have to deal with rumors of an SEC appeal. The history between the two sides doesn’t rule out the possibility. But it currently looks like the settlement brings an end to the case.