XRP's Potential ETF Inclusion and Price Catalysts by 2035: A Regulatory and Institutional Breakthrough

The resolution of the U.S. Securities and Exchange Commission (SEC) lawsuit against Ripple Labs in August 2025 marked a watershed moment for XRP. By ruling that secondary market sales of XRP to retail investors are not securities, the court provided the token with regulatory clarity, enabling its relisting on exchanges and boosting investor confidenceRipple vs SEC: Full Case Timeline, Rulings, and 2025 Settlement^[1]. This outcome not only cleared the path for XRP's potential inclusion in ETFs but also established a precedent for distinguishing between retail and institutional transactions in crypto regulationXRP Price Prediction: Could ETF Approval Trigger Massive Rally ...^[2]. With Ripple agreeing to a $125 million civil penalty—far below the SEC's original $2 billion demand—the token's legal status has shifted from a regulatory gray area to a more defined asset classRipple‑SEC Lawsuit News: XRP Case Officially Ends as SEC Walks Away From Enforcement Action^[6].

ETF Inclusion: A Mechanism for Market Cap Expansion

The approval of XRP ETFs could mechanically transform the token's liquidity and market dynamics. According to a report by CoinCentral, 16 ETF applications from major asset managers—including Grayscale, Bitwise, and WisdomTree—have an 87% likelihood of approvalXRP Forecast: Where Ripple May Be by 2035 - xrprightnow.com^[5]. If realized, these ETFs could trigger $5–8 billion in inflows within the first month alone, significantly expanding XRP's market depthXRP Forecast: Where Ripple May Be by 2035 - xrprightnow.com^[5]. This influx would mirror the trajectories of Bitcoin and Ethereum ETFs, which have attracted $50 billion and $27.6 billion in assets, respectivelyXRP Forecast: Where Ripple May Be by 2035 - xrprightnow.com^[5]. However, XRP's smaller daily trading volume (~$5 billion) compared to Bitcoin's (~$30 billion) could amplify volatility during periods of market stressXRP Price Prediction: Could ETF Approval Trigger Massive Rally ...^[2].

The CME Group's XRP futures, which hit $1 billion in open interest, further underscore institutional confidence in the token's liquidity potentialExclusive: XRP Price Prediction Post-ETF Approval and Ripple ...^[4]. Analysts project that if XRP becomes a fixture in U.S. ETF baskets by 2035, its price could reach $50–$100, translating to a $3 trillion–$6 trillion market cap, assuming sustained adoption and regulatory supportRipple vs SEC: Full Case Timeline, Rulings, and 2025 Settlement^[1]. This growth would be driven by ETF-driven demand, real-world utility in cross-border payments, and Ripple's expanding partnershipsXRP Forecast: Where Ripple May Be by 2035 - xrprightnow.com^[5].

Institutional Adoption: From Payments to Portfolios

Institutional adoption of XRP has accelerated post-2025, driven by its role in Ripple's On-Demand Liquidity (ODL) platform. For instance, Ripple's expanded custody partnership with BBVA in Spain, compliant with MiCA standards, highlights growing trust in XRP as a regulated digital assetRipple vs SEC: Full Case Timeline, Rulings, and 2025 Settlement^[1]. The ODL platform, which processed $1.3 trillion in cross-border payments in Q2 2025, offers financial institutions tangible benefits like reduced funding costs and faster settlement timesXRP Forecast: Where Ripple May Be by 2035 - xrprightnow.com^[5]. These use cases position XRP as a bridge asset in global remittances, where average fees remain high (~6%)Ripple vs SEC: Full Case Timeline, Rulings, and 2025 Settlement^[1].

Moreover, over 60 institutions have integrated XRP for treasury and cross-border operations, including banks like SBI Remit and OnafriqXRP Forecast: Where Ripple May Be by 2035 - xrprightnow.com^[5]. This adoption is not merely speculative; it reflects XRP's utility in solving real-world financial infrastructure challenges. As Ripple CEO Brad Garlinghouse noted, the post-2025 resolution allows the company to focus on expanding XRP's utility in cross-border corridorsRipple‑SEC Lawsuit News: XRP Case Officially Ends as SEC Walks Away From Enforcement Action^[6].

Price Projections and Risk Factors

Long-term price projections for XRP by 2035 vary widely. Conservative models suggest $10–$15 under moderate market conditionsHere are XRP Price Predictions for 2030, 2035, and 2040^[3], while more aggressive forecasts from platforms like Telegaon envision $69.37–$87.49XRP Forecast: Where Ripple May Be by 2035 - xrprightnow.com^[5]. These divergences hinge on key variables:
1. Regulatory Clarity: Sustained legal certainty is critical. While the 2025 settlement resolved immediate concerns, future regulatory shifts—such as changes in SEC enforcement or international standards—could reintroduce uncertaintyRipple‑SEC Lawsuit News: XRP Case Officially Ends as SEC Walks Away From Enforcement Action^[6].
2. Competition: Stablecoins and central bank digital currencies (CBDCs) pose a threat to XRP's role in remittancesRipple vs SEC: Full Case Timeline, Rulings, and 2025 Settlement^[1]. Ripple's own RLUSD stablecoin could even cannibalize XRP's adoption as a bridge assetRipple vs SEC: Full Case Timeline, Rulings, and 2025 Settlement^[1].
3. Technological Execution: The XRP Ledger's introduction of native automated market makers (AMMs) aims to improve liquidity, but technical execution risks remainRipple vs SEC: Full Case Timeline, Rulings, and 2025 Settlement^[1].

Despite these challenges, XRP's ETF inclusion could create a self-reinforcing cycle. Institutional demand via ETFs would increase liquidity, which in turn would attract more institutional participation—a dynamic observed in Bitcoin and Ethereum's ETF-driven growthXRP Forecast: Where Ripple May Be by 2035 - xrprightnow.com^[5].

Conclusion: A Compelling Long-Term Investment

XRP's regulatory progress and institutional adoption trends make it a compelling long-term investment ahead of potential 2035 milestones. The token's unique position as both a utility asset (via ODL) and a speculative ETF candidate creates dual drivers of value. While risks such as regulatory shifts and competition exist, the post-2025 settlement has already de-risked a significant portion of XRP's profile. For investors seeking exposure to a crypto asset with clear regulatory progress, institutional traction, and a defined utility, XRP's ETF inclusion could serve as a catalyst for multi-year price appreciation.