Impact of Ripple's SEC Lawsuit on XRP ETF Race

The conclusion of Ripple's extensive legal battle with the SEC opens the door for major firms like BlackRock to consider launching a spot XRP exchange-traded fund (ETF). However, as of now, BlackRock maintains that it has no immediate plans for such a fund. On Thursday, Ripple and the SEC agreed to drop their appeals, effectively ending the litigation that began when the SEC accused Ripple of raising $1.3 billion through XRP sales, deemed an unregistered security. While a judge ruled that certain programmatic sales of XRP did not violate securities laws, other direct sales to institutional investors were classified as securities. Following this development, Nate Geraci, President of NovaDius Wealth, suggested that BlackRock may have been waiting for the lawsuit's resolution before filing for an "iShares XRP ETF." He noted that it would be illogical for BlackRock to overlook crypto assets beyond Bitcoin and Ethereum, indicating a potential interest in expanding their offerings. During a recent Crypto Prime podcast, Geraci speculated that BlackRock might allow competitors to enter the market first to gauge demand. Currently, BlackRock manages ETFs for Bitcoin and Ethereum but has explicitly stated there are no plans for XRP or Solana (SOL) ETFs at this time. According to a BlackRock spokesperson, the firm is focused on its existing products rather than new offerings for XRP or SOL. The SEC is currently evaluating multiple proposals for XRP ETFs and several other crypto funds, signaling a more positive approach to digital assets under recent administrations. Some analysts suggest that if BlackRock intended to launch an XRP ETF, it would have done so by now, while companies like ProShares and 21Shares are actively pursuing approvals. Bloomberg analysts have increased their likelihood estimates for XRP ETF approvals to 90% by the end of the year. However, not everyone is convinced that BlackRock was waiting for the lawsuit's outcome. James Seyffart, a Bloomberg Intelligence ETF analyst, believes that opportunities have existed for BlackRock to act sooner. Critics believe that speculations surrounding BlackRock's potential XRP ETF are overly optimistic. Alexander Blume, CEO of Two Prime Digital Assets, argues that the lawsuit did not significantly hinder BlackRock’s decision-making regarding an XRP ETF, suggesting that their focus remains on Bitcoin and Ethereum ETFs. Vivian Fang, a finance professor at Indiana University, also highlights the distinct nature of Bitcoin and Ethereum compared to XRP, predicting that altcoins like Solana may see ETF filings before XRP. In conclusion, while Ripple’s lawsuit conclusion presents opportunities, the future of XRP ETFs remains uncertain, and major players like BlackRock seem cautious about diving into this sector just yet.