XRP News Today: XRP Gains Traction as SEC Settlement Boosts Institutional Adoption Prospects

XRP, a cryptocurrency that has faced criticism for not being truly decentralized, is gaining attention for its practical utility in streamlining cross-border payments. Unlike traditional international transfers, which can take nearly a full day and come with hefty fees, XRP enables settlements in seconds at minimal cost. This practical function forms the foundation of a more bullish outlook on the token.

Top investor Chris Neiger, who is among the top 1% of TipRanks’ stock pros, points to two reasons to be optimistic about XRP over the next year, while also acknowledging the risks that remain. The first reason centers on Ripple’s recent settlement with the Securities and Exchange Commission (SEC). The agency had accused Ripple Labs, the company behind XRP, of selling unregistered securities. That legal dispute concluded last month, with Ripple agreeing to a $50 million fine and reclaiming $125 million previously held by the SEC. Resolving the lawsuit removes a major cloud of uncertainty that had been hanging over XRP, potentially opening the door for increased institutional adoption. As Neiger notes, “There’s no guarantee that XRP will gain widespread adoption over the next year, or ever, but with the lawsuit out of the way, it’s far more likely than before that institutions could move in this direction.”

The second reason for optimism involves the possibility of an XRP exchange-traded fund (ETF). ETFs have become a popular way to gain exposure to various assets, including cryptocurrencies. Over the past year, several Bitcoin ETFs have launched with strong investor demand. Now, investor focus is shifting to XRP. According to prediction market Polymarket, the odds of an XRP ETF launching this year have jumped to 98%, up sharply from 68% in April.

Despite the promising developments, Neiger urges caution. He emphasizes that XRP remains highly volatile, and while some analysts forecast a potential 1,000% surge if an ETF is approved, they also warn of the risk of a sharp correction, possibly up to 90%, if sentiment shifts. “Still,” Neiger summed up, “the real-world application of using XRP’s blockchain to process cross-border transactions makes the token an interesting investment idea. If you’re OK with volatility, then having a small position in XRP may not be a bad idea. But it’s important to remember that crypto should play a limited role in your overall investment strategy.”