The prospect of an XRP ETF gaining regulatory approval continues to gain momentum, despite the ongoing Ripple vs. SEC lawsuit. Recent developments indicate that legal hurdles tied to Ripple’s case are not acting as a barrier to the potential launch of a spot XRP exchange-traded fund. With major financial institutions like Nasdaq taking concrete steps and top legal experts affirming the independence of the ETF approval process, market confidence in XRP’s future is stronger than ever.
Legal Clarity Supports XRP ETF Pathway
A leading legal voice in the cryptocurrency space, attorney Jeremy Hogan, has confirmed that the current status of the Ripple vs. SEC litigation does not legally impede the approval of an XRP ETF. This clarification comes amid growing speculation that the unresolved court battle might delay or derail regulatory decisions on crypto-based financial products.
Hogan emphasized that the remaining aspects of the lawsuit focus narrowly on specific sales of XRP by Ripple—not on the fundamental classification of XRP itself. Crucially, he pointed out that U.S. District Judge Analisa Torres previously ruled that XRP is not a security when sold to retail investors, which forms a strong foundation for ETF eligibility.
“There is nothing left in the lawsuit that, legally, would affect an ETF approval. All that's left are very specific sales by Ripple on exchanges. ‘XRP… is not a security’ and that's the most important thing vis a vis an ETF approval.”
— Jeremy Hogan, Pro-XRP Attorney
This distinction is critical. ETF approvals hinge on whether the underlying asset qualifies as a commodity rather than a security. Since XRP has already cleared key legal thresholds in this regard, regulators can proceed with evaluating an ETF application independently of Ripple’s corporate conduct.
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Nasdaq Advances XRP and Litecoin ETF Listings
In a significant move signaling institutional confidence, Nasdaq has filed a 19b-4 application with the SEC to list both spot XRP and Litecoin ETFs proposed by CoinShares. This regulatory filing is a formal step toward enabling these products to trade on one of the world’s most trusted stock exchanges.
Alongside Nasdaq’s submission, CoinShares has also filed the required S-1 registration form, which provides detailed disclosures about the fund’s structure, risks, and operations. These coordinated filings suggest that issuers and exchanges are preparing for potential approval and are moving with strategic foresight.
Such actions reflect broader trends in traditional finance embracing digital assets. While Bitcoin and Ethereum ETFs have paved the way, the push for altcoin ETFs marks a new phase in market maturation. XRP’s inclusion among these candidates underscores its relevance and staying power in the evolving crypto economy.
Financial analysts interpret these filings as strong indicators that institutional demand for diversified crypto exposure is rising. With major players investing time and resources into compliance and listing procedures, the ecosystem is aligning toward wider accessibility for retail and accredited investors alike.
Analysts Forecast Strong Approval Odds for XRP ETF in 2025
Bloomberg Intelligence analysts James Seyffart and Eric Balchunas have projected a 65% chance of an XRP ETF being approved by the SEC in 2025. While this figure reflects cautious optimism, it represents a notable increase in confidence compared to earlier estimates.
Their analysis places XRP behind Litecoin (90% approval likelihood) and ahead of Solana (70%) and Dogecoin (75%), positioning it as a serious contender in the next wave of crypto ETFs. These projections are based on several factors:
- Precedent set by Bitcoin and Ethereum ETF approvals
- Judicial rulings affirming XRP’s non-security status in certain contexts
- Growing institutional infrastructure supporting altcoin-based funds
The analysts note that while political and regulatory sentiment plays a role, the SEC often follows established market patterns once legal ambiguity decreases. With Ripple’s case nearing resolution and clear court guidance already issued, the path forward appears increasingly navigable.
Moreover, increased lobbying efforts and potential involvement of Ripple CEO Brad Garlinghouse in national crypto policy discussions could further influence regulatory momentum. Should high-level engagement continue, it may accelerate decision-making around innovative financial instruments like XRP ETFs.
Frequently Asked Questions (FAQ)
Q: Does the Ripple vs. SEC lawsuit block an XRP ETF?
A: No. Legal experts confirm that the lawsuit does not legally prevent an XRP ETF approval. The case centers on Ripple’s corporate sales practices, not the classification of XRP as a security for public trading purposes.
Q: How long does an ETF approval process typically take?
A: While initial reviews may take 4–6 months, full approval often requires 8–12 months due to additional filings like S-1 forms and public comment periods. Delays can occur depending on SEC workload and market conditions.
Q: Has any exchange formally applied to list an XRP ETF?
A: Yes. Nasdaq has submitted a 19b-4 filing to list CoinShares’ proposed spot XRP ETF, marking a major step toward potential trading on a regulated U.S. exchange.
Q: What are the key requirements for an ETF to be approved?
A: The SEC evaluates whether the underlying asset is resistant to manipulation, has sufficient market depth, and operates on transparent exchanges. Legal clarity on asset classification is also essential.
Q: Can the SEC approve an ETF even if a related lawsuit is ongoing?
A: Yes. The SEC has previously approved financial products tied to assets involved in litigation. Regulatory decisions are based on market structure and investor protection, not necessarily pending court outcomes.
Q: Are other altcoins also pursuing ETFs?
A: Yes. Alongside XRP, Litecoin, Dogecoin, and Solana are all seeing active ETF proposals. Institutional interest in diversified crypto exposure is expanding beyond Bitcoin and Ethereum.
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Conclusion
The journey toward a spot XRP ETF remains on track, supported by legal clarity, institutional action, and growing analyst confidence. While the Ripple vs. SEC lawsuit continues to unfold, its impact on broader market innovation appears limited. With Nasdaq’s formal listing application and Bloomberg’s favorable projections, 2025 could mark a pivotal year for XRP’s integration into mainstream finance.
As regulatory frameworks evolve and demand for transparent crypto investment tools rises, assets like XRP stand at the forefront of financial innovation. Investors watching this space should remain informed, patient, and ready to act as new opportunities emerge in one of the most dynamic chapters of digital finance.