Following the launch of Spot Bitcoin ETFs, Bitcoin (BTC) saw a significant price surge to new all-time highs. This raises the question: Could the potential launch of an XRP ETF drive the price of XRP to a $20 all-time high?
Ripple Settlement and Potential XRP ETF
The long-standing legal battle between Ripple Labs and the United States Securities and Exchange Commission (SEC) is nearing its end. The court has ordered Ripple to pay $125 million in civil penalties, marking a significant settlement. Judge Analisa Torres’ ruling clarified that XRP is not classified as a security, providing much-needed legal clarity for both XRP and the broader crypto industry.
Read more: Ripple hails major win against the SEC—but looming appeal means celebration may be premature
With Ripple’s regulatory status now resolved, there is optimism that this could lead to the launch of an XRP ETF. Kashif Raza, Founder of Bitnning, has expressed hope for new XRP ETF filings, noting that while XRP’s sales to institutional investors were deemed illegal, sales to retail investors were not. This distinction is seen as a positive development for the XRP community.
Crypto enthusiast Amelie and analyst Tony Edward both share the view that Ripple’s regulatory clarity sets the stage for an XRP ETF between 2024 and 2025. Edward acknowledges that although the XRP market is not currently in a bullish phase, cryptocurrency could experience a significant bullish takeoff once it overcomes its legal hurdles.
Impact of an ETF on XRP’s Price
The legal resolution has already resulted in a substantial price increase for XRP, which surged more than 25% to surpass $0.6 and approach $0.7. Speculation about the introduction of an XRP ETF has intensified, suggesting it could greatly influence XRP’s value.
Given Bitcoin’s surge to new all-time highs following its ETF launch, it is plausible that XRP could see a dramatic price increase if an ETF is introduced. Edward has set a conservative bullish target, predicting XRP could rise to between $4 and $8 in the event of an ETF launch.
Conversely, Brett Hill, a crypto analyst and ambassador of BitTrue, has a more optimistic outlook. He predicts that XRP could reach between $18 and $20 within the next one to six months, suggesting that a $4 to $10 target might be too conservative.
Conclusion
The resolution of Ripple’s legal battle and the potential launch of an XRP ETF could significantly impact XRP’s price. While some analysts are cautious, predicting more modest gains, others are bullish, envisioning a potential rise to $20. As the market awaits further developments, XRP’s future price trajectory remains a topic of keen interest.
Cre: Bitcoinist
David Ma was born in 1980 in California, is a Vietnamese American, known as one of the entrepreneurs and investors in the field of cryptocurrency and stock market. In 2006, he graduated from Stanford University with honors and began his career in business.
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