XRP’s price has been one of the hottest topics for discussion amongst the crypto community for a while now and that’s understandable. After all, it’s an O.G. cryptocurrency that’s been present throughout various market cycles. However, its status has been under scrutiny, especially during Ripple’s legal battle with the US Securities and Exchange Commission (SEC). The outcome of this lawsuit was long regarded as a significant catalyst for XRP’s price movements, and recent developments indicate a potential turning point in favor of Ripple.
XRP and the Outcome of the Ripple v. SEC Lawsuit
Recently, Brad Garlinghouse shared crucial news on social media—the SEC has decided to withdraw its appeal, effectively bringing an end to the lawsuit, a moment many in the community had been eagerly anticipating.
This announcement served as the massive catalyst investors were waiting for, but how did the XRP price respond? Initially, there was a surge; however, the excitement quickly fizzled, and the price retraced to pre-announcement levels.
This scenario leads us to ponder the question—what’s next for XRP? The market now appears to be on the hunt for its next potential catalyst, primarily focusing on the approval of spot XRP exchange-traded funds (ETFs) in the United States.
XRP ETFs: The Reality
Several notable asset managers have submitted applications for the approval of a spot XRP ETF, with most expecting a decision by the end of this year. This list encompasses names like Franklin Templeton, Grayscale, Bitwise, and Canary Capital, among others.
Industry experts are generally optimistic that following Ripple’s recent legal victory over the SEC, the path for approval is smoother than before. The rationale behind this optimism lies in Judge Analisa Torres’ ruling, which determined that XRP sales on the secondary market to retail buyers do not constitute an investment contract.
However, the underlying question remains: will the approval of an XRP ETF serve as a genuine catalyst for a surge in its price? The answer hinges on a critical factor—demand.
Bitcoin has witnessed a strong influx of interest in spot-based ETF products, largely driven by its established reputation as a digital store of value. In contrast, XRP’s supply is heavily concentrated, with Ripple maintaining substantial control over the market. This centralization poses a significant concern for potential investors, as a single entity’s influence can rapidly alter market dynamics, which could deter serious long-term investment, even with a spot XRP ETF’s potential approval.
While a short-term price surge post-approval may seem likely, the longer-term implications for XRP’s price due to ETFs remain uncertain.
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