XRP ETF Likely to Get Approval After SEC Ends Feud with Ripple

Since 2020, Ripple and the SEC have been engaged in a fierce legal battle. The SEC accused Ripple of conducting illegal securities sales through the sale of XRP tokens. 

A recent court ruling stating that XRP is not a security in certain cases has provided fresh optimism for XRP supporters. Read on to learn more about the latest developments in this case.

Increased Chances of XRP ETF Approval, Polymarket Predicts 87% Probability

Recent developments involving Ripple and the U.S. Securities and Exchange Commission (SEC) have significantly increased the likelihood of an exchange-traded fund (ETF) based on XRP receiving approval.

On March 19, 2025, Ripple announced that the SEC had officially dropped its four-year-long lawsuit against the company, which alleged that Ripple had conducted an unregistered securities offering through its XRP token. This legal victory has sparked a surge in optimism regarding the approval of an XRP ETF, with current betting markets indicating a probability of up to 87%.

Read More: XRP Price Prediction for the Third Week of March 2025 - Impact of XRP ETF Delay

Factors Driving Market Optimism

The U.S. Securities and Exchange Commission (SEC) is currently reviewing several applications for altcoin ETFs, including five applications for XRP ETFs. This indicates a potential shift toward a more crypto-friendly regulatory environment.

Ripple's Legal Victory

Ripple CEO Brad Garlinghouse announced that the SEC would be dropping the long-standing lawsuit against the company. This announcement led to a temporary price surge for XRP and boosted positive market sentiment.

JPMorgan Analysts' Predictions

Analysts from JPMorgan predict that an XRP ETF could attract up to $8 billion in investments within its first year of trading. This forecast reflects strong confidence in XRP's growth potential.

Positive Sentiment from the U.S. President

There is hope for a more crypto-friendly regulatory climate under U.S. President Donald Trump.

Potential Impact of XRP ETF Approval

The approval of an XRP ETF by the SEC could have significant effects on the crypto market, including:

• Increased institutional adoption of XRP.
  
   
• Enhanced liquidity and price stability for XRP.
  
   
• Encouragement of further innovation and development within the Ripple ecosystem.
  
   

Impact of the SEC’s Decision

The SEC’s decision to drop the case marks a pivotal moment for Ripple and the broader cryptocurrency landscape. Ripple CEO Brad Garlinghouse described this outcome as a “resounding victory” for the company and the crypto sector as a whole. 

Following the announcement, XRP's price surged by approximately 10%, reflecting renewed investor confidence.

Challenges and Risks

Despite high market optimism, several challenges and risks remain, including:

• Regulatory Uncertainty: The SEC still has until mid-October to decide on the approval of an XRP ETF.
  
   
• Crypto Market Volatility: The crypto market is highly volatile, and XRP’s price may be influenced by various external factors.
  
   
• Macroeconomic and Geopolitical Factors: Trade tensions and global regulatory fragmentation continue to affect investor sentiment.

Read More: First XRP ETF Approved in Brazil, Not U.S

 

Institutional Interest and Market Predictions

With regulatory clarity beginning to emerge, institutional interest in an XRP ETF is on the rise. Analysts predict that if approved, the XRP ETF could attract significant capital inflows, with estimates reaching $8 billion in investments during its first year. The SEC has until mid-October 2025 to decide on pending ETF applications, including submissions from major asset managers such as Grayscale and ProShares.

Future Outlook

The approval of an XRP ETF could lead to several positive market outcomes:

• Increased Institutional Investment: Approval would facilitate regulated access for hedge funds and pension funds to invest in XRP.
  
   
• Enhanced Liquidity: The introduction of an ETF is expected to boost trading volume and liquidity in the XRP market.
  
   
• Price Surge: Similar to past cases with Bitcoin ETFs, an XRP ETF could drive prices to new highs by attracting a broader range of investors.
  
   

Conclusion

The potential approval of an XRP ETF marks a significant milestone in the evolution of the crypto market. With the legal dispute between Ripple and the SEC now resolved, the path toward an XRP ETF has become clearer. If approved, the ETF could open doors for wider institutional adoption and further legitimize XRP as a digital asset.

The chances of the SEC approving an XRP ETF are increasing, reflecting strong market optimism about XRP’s future. However, investors should remain cautious and consider the associated risks of investing in cryptocurrency assets. We hope this article is helpful!

FAQ

What is an XRP ETF?
An XRP ETF is an investment product that allows investors to gain exposure to XRP’s price movements without directly owning the cryptocurrency.

When will the SEC decide on the XRP ETF approval?
The SEC has until mid-October to make a decision.

How much investment could an XRP ETF attract?
JPMorgan analysts estimate that an XRP ETF could draw up to $8 billion in investments within its first year of trading.

What impact could the approval of an XRP ETF have on XRP's price?
The approval of an XRP ETF could increase demand and drive XRP’s price higher.

What are the risks of investing in XRP?
Like all cryptocurrencies, XRP carries high price volatility and market risks.