XRP ETF Approval Unaffected by Lawsuit as Institutional Demand Rises

February 12, 2025 by Mutuma Maxwell

• A top legal expert confirmed that the ongoing Ripple vs. SEC lawsuit does not affect the XRP ETF approval process.
• Nasdaq has submitted listing applications for XRP and Litecoin ETFs, reflecting growing institutional interest in digital assets.
• Bloomberg analysts predict a 65% chance of XRP ETF approval in 2025, boosting investor confidence in the cryptocurrency market.

According to a top legal expert, the XRP ETF approval process remains unaffected by the ongoing Ripple vs. SEC lawsuit. Nasdaq has filed listing applications for XRP and Litecoin ETFs, indicating growing institutional interest in digital assets. Meanwhile, Bloomberg analysts estimate a 65% chance of XRP ETF approval in 2025, fueling investor optimism.

XRP ETF Approval Unaffected by Ripple Lawsuit

The Ripple vs. SEC lawsuit has raised concerns about its potential impact on the XRP ETF approval process. However, pro-XRP lawyer Jeremy Hogan clarified that the case does not legally hinder an ETF approval. He explained that regulatory procedures for ETFs follow independent guidelines that do not depend on Ripple’s legal battle.

Hogan responded to an XRP enthusiast on X who questioned whether the SEC would approve an ETF while the lawsuit continued. He stated that a settlement is likely before an ETF approval but emphasized that the two are not directly linked. He added that ETF approvals require extensive regulatory steps, which naturally take longer than litigation outcomes.

Another user highlighted that the first XRP ETF application was submitted on October 24, questioning if approvals take four to six months. Hogan acknowledged this general timeline but noted that additional filings, such as S-1 forms, could extend the process to eight to twelve months. He reassured that nothing in the case legally prevents the SEC from approving an XRP ETF.

The lawsuit primarily focuses on specific XRP sales on exchanges rather than the broader legal status of the asset. Hogan emphasized that whether XRP is a security has already been addressed. Since the SEC has previously approved ETFs for assets under legal scrutiny, the agency could authorize an XRP ETF without resolving the case.

Nasdaq Moves Forward with XRP and Litecoin ETF Listings

Nasdaq has taken a significant step by submitting a 19b-4 form for listing CoinShares XRP and Litecoin ETFs. This filing demonstrates increased confidence in crypto ETFs despite ongoing regulatory debates. It also suggests that major financial institutions anticipate broader acceptance of cryptocurrency investment products.

CoinShares has also submitted an S-1 form required before launching the ETFs. These regulatory filings indicate that institutional demand for cryptocurrency-backed ETFs is growing. The move aligns with a broader trend of expanding crypto-related financial instruments in the traditional market.

The growing interest in altcoin ETFs has increased market activity and investor confidence. XRP’s inclusion in these applications signals its strengthening position in the financial ecosystem. Analysts believe these steps reflect a shift toward wider regulatory approval for crypto ETFs.

XRP ETF Approval Likely in 2025, Analysts Predict

Bloomberg analysts James Seyffart and Eric Balchunas estimate a 65% chance of an XRP ETF approval in 2025. Their analysis also suggests that other cryptocurrencies, including Litecoin, Dogecoin, and Solana, have higher approval probabilities. Litecoin holds a 90% chance, Dogecoin has a 75% probability, and Solana follows with a 70% estimate.

Legal clarity and rising institutional adoption have contributed to the growing momentum for XRP ETFs. Investors are increasingly optimistic as regulatory discussions evolve in favor of crypto-backed investment products. The analyst estimates indicate a positive outlook for XRP as an emerging contender in the ETF space.

Recent reports suggest that Ripple CEO Brad Garlinghouse may join Trump’s crypto council board. If this happens, it could further strengthen Ripple’s market position and influence in regulatory discussions. With increasing institutional backing, the XRP ETF approval process appears more likely to advance in the near future.