Ripple President Monica Long has emphasized XRP’s regulatory clarity and substantial trading volumes as key factors that could support the potential for an 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 are seen as significant legal victories for the cryptocurrency industry.
ETFs have become a major topic in the crypto space in 2024 as crypto asset holders speculate on the potential impact of institutional capital inflows into their preferred coins. With the recent approval of Bitcoin and Ethereum ETF applications by the SEC, supporters of other crypto projects, including the XRP community, are now advocating for their own ETFs, according to Crypto News Flash.
In a recent interview, Ripple President Monica Long made a case for XRP ETFs, stating, “I think it would be very sensible for someone to launch an XRP ETF.” She highlighted the asset’s impressive longevity and high trading volumes on leading exchanges as key factors supporting the launch of XRP ETFs. Long also noted 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 echo those of Ripple CEO Brad Garlinghouse, who recently 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.
Experts such as ETF Store President Nate Geraci and Senior Bloomberg Analyst James Seyffart have stated that the launch of ETFs linked to altcoins like XRP and Solana faces several prerequisites that may span several years. This includes establishing a CFTC-regulated futures market for these assets.
However, there is potential for an XRP ETF following District Judge Amy Berman Jackson’s alignment with Judge Torres’ ruling on XRP regarding programmatic and secondary sales, which is a significant development for the cryptocurrency industry. Additionally, in the Binance versus SEC case, Judge Jackson dismissed the SEC’s contention regarding secondary sales of BNB tokens by entities other than Binance, underscoring 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 News Flash report. As of press time, XRP is trading 1% down at $0.4757 with a market cap of $26.4 billion.