The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), which has been ongoing since 2020, ended with parties withdrawing the appeal.
During the lawsuit, the SEC accused the unregistered securities of raising $1.3 billion through the sale of XRP. New York Judge Annalisa Torres held that XRP programmatic sales did not violate securities laws, but that direct sales to institutional investors were deemed securities.
The closure of the incident has fueled speculation that major investment companies, particularly BlackRock, could potentially launch a Spot XRP Exchange Sales Fund (ETF). However, BlackRock revealed in a statement that there are no plans for XRP or Solana (SOL) ETFs.
Bloomberg Intelligence analyst James Seifert said that if BlackRock wanted to list XRP or Sol ETFs, he might have already done so.
Companies such as Proshares, 21shares, Canary and Bitwise have already submitted their XRP ETF applications to the SEC. In June, Bloomberg analysts increased the odds of approval for Spot XRP, Dogecoin and Cardano ETFs to 90% by the end of the year.
However, Alexander Blume, CEO of two Prime Digital assets, calls these expectations “overly optimistic,” pointing out that XRP’s market capitalization is less than half that of Ethereum. Vivian Fang, a finance professor at Indiana University, said public blockchain-based Altcoins ETFs like Solana are likely to precede Ripple’s dedicated funds.
*This is not investment advice.