- Ripple is reported to be preparing the launch of XRP ETF in either 2024 or 2025 which could be followed by an IPO.
- An expert believes that an IPO approval would be quite difficult unless Ripple considers moving abroad.
XRP became the second crypto to obtain regulatory clarity in the US following an almost three-year legal battle between Ripple Labs and the US Securities and Exchange Commission. Since gaining partial victory over the Agency, the possible launch of the XRP Exchange Traded Fund (ETF) has gained traction. Interestingly, key figures within the industry have hinted that this is now beyond rumors, as the company is working on strategic plans to make this a reality.
On the timeline, former Ripple director Sean McBride has disclosed that the XRP ETF could see the light of day in either 2024 or 2025.
You will see a #XRP #ETF in 2024 or 2025. You will also see a #Ripple #IPO outside the US in 2025. — Sean McBride (@seanmcbride16) February 20, 2024
It is worth noting that Ripple’s boss Brad Garlinghouse has already admitted that the company is willing to launch an ETF as he foresees a landscape with different diverse options.
We would certainly welcome it. It only makes sense there will be other ETFs too… the earliest days of the stock market. You want to typically think about diversifying risk.
In January, the SEC approved its first-ever spot Bitcoin ETF for multiple institutions, driving millions of dollars into the market. According to experts, this could pave the way for other tokens to have their versions. Speaking on the plans of Ripple, McBride further disclosed that an Initial Public Offering (IPO) could be launched in 2025. Commenting on this, Wall Street veteran Linda Jones believes that Ripple’s IPO could drive its valuation to $150 billion. This could push the XRP price to almost $3. As of press time, the asset had a market cap of $29.7 billion.
More on the Ripple (XRP) ETF and IPO
According to Jones, the success of XRP is partly tied to the growth of the Ripple shares similar to Bitcoin’s influence on mining companies. However, the IPO approval could be subjected to another regulatory hurdle. Jones expects a delay in the approval unless Ripple chooses to move abroad.
Garlinghouse, however, seems to have no issue with this. In a recent interview, the Ripple CEO stressed the commitment of the company toward compliance and regulatory engagement.
Everything we have done at Ripple has been compliant first… this year, I think has to be a compliance-first mindset for all of the crypto industry.
Garlinghouse also called on the US authorities to take the lead in crypto regulation. On top of that, he emphasized the company’s participation in a super PAC, alongside Andreessen Horowitz and Coinbase to support pro-crypto candidates.
Speaking on the impact of the ETF on the price, crypto analyst Chad Steingraber stated that the XRP ETF would purchase XRP from public exchanges, lock it up, and issue derivative shares. In this case, there would be a significant reduction in XRP supply, triggering a spike in price with an increasing demand.
At the time of writing, XRP was trading at $0.549931 after declining by 0.39% in the last 24 hours. The asset is also down by 0.65% in the last seven days.
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