With the U.S. Securities and Exchange Commission (SEC) approving multiple Bitcoin spot exchange-traded funds (ETFs), speculation is mounting within the cryptocurrency community about the potential for an XRP ETF. Prominent crypto world figures are confident that such a development is imminent, particularly following the SEC’s recent approvals.
Cryptocurrency experts anticipate XRP ETF launch
The optimism for an XRP ETF is fueled by the SEC’s landmark decision on January 10 to grant licenses for 11 Bitcoin spot ETFs. This move, seen as a significant step forward for cryptocurrency mainstream acceptance, has set the stage for other digital currencies to follow suit. Among those believed to be next in line is XRP, a digital asset linked to Ripple, a company currently embroiled in a legal battle with the SEC.
Panos Mekras, a well-known figure in the cryptocurrency community and co-founder of Anodos Finance, expressed his anticipation for an XRP ETF on social media. Zach Rector, a crypto YouTuber known for his support of XRP, also voiced his expectation for such a development, highlighting that introducing an XRP ETF does not necessarily categorize XRP as a security.
Legal hurdles and market potential
Despite the growing anticipation, some crypto community members are cautious, pointing out that the launch of an XRP ETF may hinge on the resolution of the ongoing SEC vs. Ripple case. The case centers on classifying XRP sales to institutions and remains a significant legal hurdle.
On the other hand, the optimism is partly based on recent market movements. For instance, Grayscale’s reinstatement of XRP in its Digital Large Cap Fund is a positive indicator. Moreover, the Chief Investment Officer of Valkyrie, a firm approved for a Bitcoin ETF, hinted that an XRP ETF might emerge alongside an Ethereum spot ETF. However, he expressed uncertainty about Valkyrie pursuing an XRP ETF specifically.
The SEC’s approval of Bitcoin spot ETFs has opened the doors for other cryptocurrencies to gain similar recognition. The XRP community, buoyed by recent developments and expert opinions, eagerly anticipates the potential approval of a Ripple ETF. While the legal challenges involving Ripple continue, the market sentiment and recent trends indicate a growing possibility of XRP joining the ranks of Bitcoin in the ETF market.