- Legal experts confirm that the XRP lawsuit will not interfere with the ETF approval process, citing prior regulatory approvals for assets under scrutiny.
- Nasdaq has submitted applications for XRP and Litecoin ETFs, signaling growing institutional interest and confidence in crypto investment products.
- Analysts predict a 65% chance of XRP ETF approval in 2025, with other crypto assets showing even higher approval probabilities based on regulatory trends.
A leading legal expert has confirmed that the ongoing Ripple vs. SEC lawsuit will not affect the approval of an XRP exchange-traded fund (ETF). Speculation had been mounting about whether the legal battle would delay regulatory decisions.
However, pro-XRP lawyer Jeremy Hogan clarified that while a settlement may occur before an ETF approval, the two matters are not directly linked. He explained that the ETF approval process follows a structured timeline independent of the lawsuit.
Regulatory Timelines Define ETF Approval Process
Hogan responded to an inquiry on X, stating that the ETF approval process typically spans eight to twelve months due to extensive regulatory steps, including S-1 filings. This confirms that the regulatory pathway for ETFs is separate from the legal proceedings involving Ripple.
Furthermore, he emphasized that the lawsuit primarily addresses specific XRP sales by Ripple and does not pose a legal barrier to ETF approval.
The US Securities and Exchange Commission (SEC) previously permitted ETFs for assets investigated under the law which shows the suit against XRP does not affect ETF approval. The essential part of this case regarding XRP being classified as a security was settled before removing any legal blocks to authorize the ETF approval.
The current legal dispute has done nothing to diminish the confidence level among institutions regarding XRP. Nasdaq submitted a 19b-4 filing to the SEC for establishing XRP and Litecoin ETFs. An S-1 filing at CoinShares serves as the mandatory step needed for an ETF to establish its launch. Financial institutions demonstrate increasing interest in crypto investments by filing documents that expand their crypto investment options.
Institutional Confidence Fuels Optimism
These developments generated a positive market response from the entire crypto market sector. The Nasdaq filings generate optimism from investors because they indicate rising interest from institutional participants. The reports indicate Brad Garlinghouse may lead a crypto advisory council proposed by former US President Donald Trump to enhance Ripple’s authority during regulatory exchanges.
The Bloomberg analysts James Seyffart and Eric Balchunas calculate that XRP requires 65% focused approval to meet the criteria for an ETF in 2025. Different cryptocurrencies including Litecoin, Dogecoin, and Solana present growing probabilities of approval because digital asset regulatory frameworks are becoming more transparent.
The XRP ETF approval discussion stands as an essential controversy within cryptocurrency institutions despite accelerating institutional adoption.
The price of XRP rose by 3% which brought its value to $2.50 after it reached a 24-hour low of $2.41. The bullish market sentiment increased in XRP’s Futures Open Interest by 5%. The price of XRP may increase to $3 while holding strong levels of support in short-term markets according to analysis which predicts a $6 rally in the long run.
