XRP News Today: Ripple and SEC Settle Legal Dispute XRP Surges 10% BlackRock ETF Hints Emerge

Ripple and the US Securities and Exchange Commission (SEC) have agreed to formally end their long-standing legal dispute, marking a significant development in the cryptocurrency sector. On August 7, both parties filed a joint statement confirming they will withdraw their appeals following a Commission vote [1]. This agreement brings closure to a case that began in December 2020 and has drawn widespread attention from investors and industry observers [1]. Ripple’s Chief Legal Officer, Stuart Alderoty, described the settlement as a milestone in the company’s legal journey [1]. Under the terms of the agreement, XRP will not be classified as a security, and neither party is required to pay the other’s legal costs [1].

The settlement has been widely interpreted as a win for Ripple, aligning it with other crypto firms like Coinbase that have reached agreements with the SEC [1]. In the aftermath of the announcement, the price of XRP surged by over 10%, reaching $3.33 at the time of reporting [1]. This price movement has fueled speculation that institutional players, particularly asset managers, may begin to incorporate XRP into investment products.

Among the most prominent speculations is the potential launch of a spot XRP exchange-traded fund (ETF) by BlackRock, the world’s largest asset manager. BlackRock is already a major player in crypto ETFs, offering products tied to Bitcoin and Ethereum [1]. Nate Geraci, president of NovaDius Wealth, speculated that BlackRock may have been waiting for regulatory clarity before launching a product related to XRP [1]. He argued that ignoring XRP in favor of only Bitcoin and Ethereum could imply that no other cryptocurrencies have long-term investment value [1]. However, Geraci acknowledged the speculative nature of his remarks and admitted, “I’ll own it if I’m wrong” [1].

Not all industry experts share Geraci’s optimism. Bloomberg Senior ETF Analyst Eric Balchunas expressed skepticism, suggesting that BlackRock is likely content with its current crypto product lineup and sees no immediate need for expansion [1]. He cited the concept of “law of diminishing returns” for adding more products, though he noted that his view was based more on intuition than concrete data [1]. Despite his doubts about a BlackRock XRP ETF, Balchunas remains confident in the broader regulatory outlook. He estimated a 95% chance that an XRP ETF could receive approval before the end of the year [1].

The settlement between Ripple and the SEC is viewed as a pivotal moment for the cryptocurrency industry. It provides a level of legal certainty for XRP and potentially opens the door for broader institutional adoption. However, while speculation around BlackRock’s potential XRP ETF is growing, no firm commitments have been made, and opinions among industry experts remain divided.

Source: [1] Ripple and SEC settle, sparking XRP’s 10% rally and BlackRock ETF speculation https://cryptoslate.com/ripple-and-sec-settle-sparking-xrps-10-rally-and-blackrock-etf-speculation/