ETH-Spot ETF Approval Could Impact XRP-Spot ETF Prospects
Exciting developments in the cryptocurrency market have the potential to pave the way for an XRP-spot ETF following the approval and launch of an ETH-spot ETF. SEC Chair Gary Gensler recently made a public statement labeling ETH as a security post the Merge event. Additionally, a significant court ruling in July 2023 determined that programmatic sales of XRP do not meet the third prong of the Howey Test.
The possibility of filing for XRP-spot ETFs now hinges on the SEC’s decision regarding its intention to appeal the ruling on Programmatic Sales of XRP. The SEC vs. Ripple case is currently in its final stages with both parties waiting for a court ruling on omnibus sealing motions before deliberations can begin.
It is important to note that in the same ruling in July 2023, Judge Analisa found that Ripple had violated US securities laws by not registering XRP as a security when selling to institutional investors. The SEC has sought a substantial penalty of nearly $2 billion and an injunction to prevent Ripple from selling XRP to institutional investors. In response, Ripple has presented its argument, suggesting that the penalty should not exceed $10 million. The anticipation for a court ruling in the near future is high.
One potential hurdle that remains for XRP is the possibility of an appeal by the SEC against the ruling on Programmatic Sales, which could have a lingering impact on the cryptocurrency’s market.
Throughout the week from Monday (May 20) to Saturday (May 25), XRP saw a solid increase of 5.03%, reaching a price of $0.5347.
By analyzing the latest developments in the SEC vs. Ripple case and the potential approval of an ETH-spot ETF, investors can gain a deeper understanding of the cryptocurrency market landscape and make informed decisions about their investment strategies moving forward. Stay tuned to Extreme Investor Network for more updates and insights on the stock market, trading, and all things Wall Street.