Ripple President Monica Long believes that XRP’s regulatory clarity and strong trading volumes are key factors that could pave the way for an XRP ETF in the future. This comes after District Judge Amy Berman Jackson’s recent alignment with a ruling on XRP and dismissal of the SEC’s arguments in a case against Binance, marking significant legal victories for the cryptocurrency industry.
The topic of ETFs has taken center stage in the crypto space in 2024, with many speculating on the potential impact of institutional capital inflows into various coins. Following the SEC’s approval of Bitcoin and Ethereum ETF applications, supporters of other crypto projects, including the XRP community, are advocating for their own ETFs. Ripple President Monica Long recently made a case for XRP ETFs, citing the asset’s longevity and high trading volumes on major exchanges as reasons for their launch.
Long highlighted that XRP, along with Bitcoin, is one of the few crypto assets with regulatory clarity in the U.S. This clarity stems from a court ruling in July 2023 that determined XRP is not a security. Ripple CEO Brad Garlinghouse has also expressed optimism about the inevitability of XRP ETFs, although experts believe it may still take years for more altcoin ETFs to materialize.
Experts like Nate Geraci and James Seyffart believe that the launch of ETFs linked to altcoins like XRP may require several prerequisites, such as establishing a CFTC-regulated futures market for these assets. However, recent legal developments, including Judge Jackson’s alignment with a ruling on XRP and dismissal of the SEC’s arguments in the Binance case, could improve the odds of an XRP ETF.
Despite facing constant selling pressure and a recent drop in price below $0.50, XRP continues to trade at $0.4757 with a market cap of $26.4 billion. Ripple’s efforts in challenging the SEC’s claims over the past four years have set a precedent in the crypto industry, showcasing the company’s resilience in the face of regulatory challenges.