The long-standing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has reached a pivotal turning point. Ripple’s decision to drop its cross-appeal marks the effective end of a four-year regulatory saga, clearing a major hurdle for the potential launch of a spot XRP exchange-traded fund (ETF) in the United States. This landmark development has reignited market optimism, sending Ripple’s price up by 3.5% to $3.18 and fueling speculation that financial giant BlackRock could soon file for a spot XRP ETF.
With this legal resolution, the crypto industry sees a growing window of opportunity for institutional adoption of XRP, aligning it more closely with other major digital assets like Bitcoin and Ethereum that already have approved ETFs.
Regulatory Clarity Paves Way for Spot XRP ETF
Ripple’s move to drop its cross-appeal against the SEC signals a strategic conclusion to the prolonged litigation. While the SEC had previously classified XRP as a security in its 2020 lawsuit, a pivotal July 2023 ruling by Judge Analisa Torres determined that XRP is not inherently a security when sold to retail investors. This distinction laid the legal groundwork for treating XRP more like a commodity than a security—opening the door for ETF approvals.
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Nate Geraci, President of ETF Store, described the appeal withdrawal as a “closed chapter” that removes one of the last major obstacles to a spot XRP ETF. “This decision gives asset managers like BlackRock the confidence they need to move forward,” Geraci noted. “The path is now clearer than ever.”
Earlier in the month, Bloomberg analysts upgraded the odds of an XRP ETF approval to over 95%, citing increased SEC engagement with crypto ETF filings. While Polymarket data currently reflects a 78% probability of approval by year-end, the momentum is undeniably building.
BlackRock’s Potential Entry Into XRP ETF Space
BlackRock, the world’s largest asset manager, has already made significant strides in the crypto ETF space with its Bitcoin and Ethereum spot ETFs. With regulatory clarity improving around XRP, industry watchers believe a filing for a spot XRP ETF could be on the horizon.
A BlackRock-backed ETF would bring massive institutional credibility and capital inflow potential to XRP. Given BlackRock’s influence on Wall Street and its history of shaping investment trends, such a move could catalyze broader acceptance of altcoins within traditional finance.
Other major financial players are also watching closely. The approval of a U.S.-based spot XRP ETF would likely trigger a domino effect, encouraging other firms like Fidelity, VanEck, or ARK Invest to follow suit.
Global Precedent: 3iQ XRP ETF Gains Traction in Canada
While the U.S. awaits regulatory green lights, Canada has already taken action. The 3iQ XRP ETF launched recently and quickly amassed over $32 million in assets under management (AUM) within just four days. This strong demand underscores investor appetite for regulated exposure to XRP.
The success of the Canadian ETF serves as a real-world case study for U.S. regulators and financial institutions. It demonstrates that there is both market demand and operational viability for an XRP-based investment product.
Ripple Price Surge and Market Reactions
Following Ripple’s announcement, XRP’s price jumped 3.5%, breaking out of its previous trading range of $2.0–$2.4 and reaching $3.18. The rally was accompanied by significant trading volume and liquidations—over $5.5 million in total, with more than $3.5 million coming from short positions.
This price movement reflects renewed confidence among traders and investors who had long viewed the SEC lawsuit as an overhang on XRP’s valuation.
Legal experts within the crypto community have welcomed the resolution. Attorney Fred Rispoli emphasized that Ripple’s swift action suggests prior coordination with the SEC:
“The fact that Ripple was ready less than a day after the Torres ruling means they likely planned this scenario, discussed it with the SEC, and made necessary agreements to move forward. Thank heavens this is over!”
Meanwhile, XRP lawyer Bill Morgan highlighted growing institutional accumulation, stating that wallet data shows large holders are actively buying despite past legal uncertainties. “This growing institutional conviction was happening anyway,” Morgan said, “and now it can accelerate.”
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Core Keywords Integration
Throughout this evolving narrative, several core keywords emerge as central to understanding the significance of this moment:
- Spot XRP ETF
- BlackRock
- Ripple price
- SEC lawsuit
- XRP ETF approval
- institutional adoption
- crypto regulation
- digital assets
These terms not only reflect current market dynamics but also align with high-volume search queries from investors seeking clarity on XRP’s future.
Frequently Asked Questions (FAQ)
Q: What does Ripple dropping its cross-appeal mean for XRP?
A: It effectively ends the legal dispute with the SEC, reinforcing Judge Torres’ ruling that XRP is not a security in public markets. This strengthens the case for treating XRP like other commodities, making it eligible for ETF consideration.
Q: Is a spot XRP ETF guaranteed now?
A: While not guaranteed, the chances have significantly improved. With legal hurdles removed and strong precedent from other crypto ETFs, approval seems increasingly likely—especially if major firms like BlackRock submit filings.
Q: How did the market react to the news?
A: XRP’s price rose 3.5% to $3.18, breaking months of consolidation. Trading volume spiked, and over $5.5 million in liquidations occurred—mostly short positions being forced out.
Q: Has any country already launched an XRP ETF?
A: Yes, Canada’s 3iQ launched an XRP ETF that attracted over $32 million in assets within four days—proving strong investor demand exists.
Q: Could BlackRock really file for an XRP ETF?
A: Absolutely. Given their prior moves into Bitcoin and Ethereum ETFs, and with clearer regulation around XRP, BlackRock is well-positioned to expand into altcoin-based products.
Q: What’s next for Ripple after the lawsuit?
A: Focus will shift toward global expansion, partnerships with financial institutions, and supporting infrastructure for payments and tokenized assets—areas where Ripple already has strong use cases.
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Looking Ahead: A New Era for XRP
With the SEC lawsuit behind it, Ripple is entering a new phase defined by growth, innovation, and deeper integration into mainstream finance. The possibility of a spot XRP ETF—especially one led by BlackRock—could be transformative, bringing institutional capital, enhanced liquidity, and long-term price stability.
As regulatory frameworks continue to evolve and global markets embrace digital assets, XRP stands at the threshold of unprecedented opportunity. Investors, institutions, and regulators alike will be watching closely in the months ahead.
For those tracking crypto’s journey toward legitimacy, the resolution of the Ripple-SEC case may well be remembered as a turning point—not just for one asset, but for the entire industry’s path to maturity.