XRP Surges as Ripple Settles with SEC, ETF Hopes Rise

XRP has taken center stage once again following a landmark agreement between Ripple and the U.S. Securities and Exchange Commission (SEC), igniting a fresh wave of optimism around the token and sparking chatter about a possible exchange-traded fund (ETF) from BlackRock.

On August 7, Ripple and the SEC reached an agreement to bring an end to their legal battle that began in December 2020. According to a joint filing, both parties will withdraw their appeals, sealing years of courtroom drama. Ripple’s Chief Legal Officer, Stuart Alderoty, confirmed the end of the case, noting that XRP would not be deemed a security. The final settlement also requires each side to bear its respective legal expenses.

With the cloud of regulatory uncertainty finally lifting, the announcement triggered a 10% jump in the value of XRP, which surged to $3.33. This development positions Ripple among other prominent crypto companies—such as Coinbase—that have recently settled disputes with U.S. regulators.

The resolution has also reignited speculation that global investment powerhouse BlackRock could be plotting an XRP-focused ETF. BlackRock already manages leading Bitcoin and Ethereum ETFs, and some analysts believe the timing is ripe for an expansion into new digital assets.

Nate Geraci, president of NovaDius Wealth, suggested that the legal clarity offered by Ripple’s settlement could pave the way for BlackRock to consider an XRP ETF under the iShares brand. He argued that limiting ETFs to only Bitcoin and Ethereum sends a message that no other cryptocurrencies possess long-term viability, adding further weight to XRP’s emergence as a prime candidate for ETF inclusion.

Despite the excitement, not everyone is convinced about BlackRock’s next move. Eric Balchunas, Bloomberg’s Senior ETF Analyst, voiced skepticism over the necessity for BlackRock to add more crypto ETFs. He cited the “law of diminishing returns” and suggested the firm may remain content with its current offerings. However, Balchunas didn’t close the door entirely and acknowledged that he was speculating rather than speaking from confirmed strategy.

That said, Balchunas remains optimistic about the broader regulatory outlook for XRP. He gave a confident 95% probability that an XRP ETF could secure approval before the year’s end—emphasizing the potential constructiveness of the current policy environment for cryptocurrencies beyond Bitcoin and Ethereum.

This sentiment reflects the broader shift Ripple has undergone. Free from its ongoing legal distractions, Ripple is now poised to pursue more strategic partnerships and functionalities, especially within the traditional finance sector. The potential inclusion of XRP into a high-profile ETF structure would mark a significant advancement in mainstream acceptance of the token.

Meanwhile, as market watchers dissect the legal ramifications, investor confidence around XRP continues to build. The case’s resolution offers a precedent for how digital assets can gain compliance legitimacy in an evolving regulatory climate without compromising decentralization. Whether BlackRock’s involvement materializes or not, the legal win alone propels XRP into a stronger position within the crypto ecosystem.

Related: XRP Price: $12M Max Pain for Bears

As always, it remains to be seen how fast institutions will act on this clarity. But one thing is evident: XRP has re-entered the spotlight with renewed vigor, and Ripple is now charting a clearer path forward in the maturing landscape of digital finance.