- Trump’s win has ignited XRP’s ETF hopes amid regulatory whispers.
- XRP’s path to $1.57 has sharpened with upcoming SEC shake-ups.
- XRP has seemingly approached a breakthrough of regulatory walls.
The crypto world is abuzz with anticipation following the unexpected turn of events in the 2024 U.S. presidential election. A shift in leadership often brings policy changes, and this time, digital asset enthusiasts are particularly attentive. Whispers of regulatory reforms are circulating, hinting at a new era for cryptocurrencies.
Among the myriad of digital assets, Ripple’s XRP stands out as a potential beneficiary of these changes. The prospect of an XRP exchange-traded fund (ETF) gaining approval seems more plausible than ever. But how exactly does the new administration’s stance influence this possibility?
Is XRPโs Path to ETF Approval Finally Clear?
Donald Trump’s return to the Oval Office has reignited discussions about the regulatory environment for cryptocurrencies in the United States. Known for his business-friendly policies, Trump’s administration is expected to take a more lenient approach toward digital assets than his predecessor.ย
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This shift could be a game-changer for XRP and its quest for ETF approval. The Swiss ETF issuer 21Shares had previously filed an S-1 form with the Securities and Exchange Commission (SEC) to launch an XRP ETF. Under the previous administration, the approval seemed uncertain due to stringent regulatory scrutiny.ย
However, industry experts believe the SEC might adopt a more accommodating stance with Trump’s win. Nate Geraci, President of The ETF Institute, had earlier noted that the election outcome would profoundly impact the future of crypto ETFs.ย
“A Trump administration could finally mean a friendlier crypto environment in which ETF innovation accelerates,” he remarked.
This sentiment resonates with many in the crypto community who anticipate that regulatory hurdles could be lowered, allowing for faster approval of ETFs that include assets like XRP. Ripple’s CEO, Brad Garlinghouse, has expressed optimism about the inevitability of an XRP ETF.
XRPโs Path to $1.57? ETF Approval Changes the Game
The approval would grant American investors greater exposure to XRP, potentially increasing demand and price. Analysts predict that with the ETF’s introduction, Ripple’s price could reach $1.57 by 2025.
Grayscale’s recent proposal to list an exchange-traded fund featuring a diversified basket of cryptocurrencies, including XRP, is also under SEC review. It would mark the first multi-asset crypto ETF approved for trading on a national securities exchange.ย
Grayscale’s GDLC Fund manages a portfolio that includes Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and XRP, totaling approximately $534 million in assets under management. The new administration’s potential crypto-friendly policies might benefit XRP as well as other digital assets seeking regulatory approval.ย
Companies like Canary Capital have filed for a Solana ETF, and there’s a growing interest in ETFs for assets like Litecoin and Avalanche. The anticipated regulatory easing could accelerate the approval process for these ETFs, fostering greater institutional investment in the crypto market.
Moreover, appointing new SEC leadership under Trump’s administration could bring fresh perspectives to the regulatory body. The crypto industry has often criticized the SEC’s stringent approach, which stifles innovation. A shift toward a more balanced regulatory framework could address these concerns, promoting growth and innovation within the sector.
On the Flipside
- Even with a more crypto-friendly administration, altering existing regulations and approving new ETFs is a lengthy process that involves multiple stakeholders.
- Ripple is still suing the SEC, which could complicate or delay the approval of an XRP ETF despite the administration’s change.
- Cryptocurrency markets are inherently volatile, and external factors could impact XRP’s price regardless of ETF approval or regulatory shifts.
Why This Matters
A more accommodating regulatory environment may unlock new opportunities for digital assets, particularly XRP, by easing the pathway to ETF approvals. The approval of XRP and other crypto ETFs could catalyze significant growth in the market, attracting institutional investors and fostering innovation across the industry.
To learn more about how Trump’s victory is impacting Bitcoin, read here:
Bitcoin Breaks $75K as Trumpโs Victory Sparks Crypto Frenzy
For insights on the market rally and its effect on crypto bears, read here:
Trump-Led Market Rally Wipes Out Crypto Bears Overnight
