In a recent development, pro-XRP lawyer Jeremy Hogan has provided insights into the potential timeline for the approval of an XRP exchange-traded fund (ETF) by the U.S. Securities and Exchange Commission (SEC). Hogan, known for his expertise in cryptocurrency law, suggests that the average timeframe for ETF approval ranges from six to twelve months. Based on this estimate, a decision on the XRP ETF application could be expected by mid-2025, assuming the SEC’s ongoing appeal process proceeds as anticipated.
Hogan’s comments come in the wake of Bitwise Asset Management’s October filing for an XRP ETF with the SEC. The application, which highlights the SEC as a primary risk factor for investors, is currently under review. Hogan emphasized that ETF applications typically follow a predictable timeline, with approval or denial usually occurring within a year. He noted that the pending SEC appeal, related to the Ripple case, will likely influence this process.
The SEC’s appeal stems from its legal battle against Ripple Labs, where a U.S. court ruled that XRP sales to institutional investors violated securities laws, but secondary market sales did not. The appeal, which challenges parts of this ruling, is set for review in January 2025. Hogan underscored that the timeline for ETF approval depends heavily on the resolution of this appeal.
Bitwise Chief Investment Officer Matt Hougan has expressed confidence in XRP’s potential, stating that the company’s filing reflects its belief in the cryptocurrency’s future. Hougan mentioned that Bitwise files applications only when there is a viable path to approval. He noted that the ETF aims to capitalize on XRP’s strong community support and technological foundation, despite the challenges posed by the US SEC lawsuit.
Following Bitwise’s lead, other firms, including Canary Capital and 21Shares, have also filed similar ETF applications. The ongoing legal dispute between the SEC and Ripple Labs continues to shape the regulatory landscape for XRP. In a recent development, the court issued an order in favor of Ripple Labs, XRP II LLC, and Ripple CEO Brad Garlinghouse. This ruling adds to Ripple’s growing momentum following earlier partial victories.
As the cryptocurrency market evolves, the approval of an XRP ETF could mark a significant milestone, potentially opening new avenues for investors and further legitimizing the digital asset. The coming months will be crucial in determining the future of XRP and its place in the financial ecosystem.
