Investors have been swept up in speculation about a potential XRP ETF, despite no formal applications being made. Rumors were initially fueled by a false registration in BlackRock’s name, which was quickly debunked. The question remains: will an XRP ETF be approved this year or the next?
Challenges in Approving a Spot XRP ETF
The crypto community is closely watching XRP after the ETH ETF process, even though there are no official applications for an XRP ETF. Fox Business reporter Terett has highlighted that a spot XRP ETF is unlikely without the prior approval of a futures ETF, drawing parallels to the regulatory path of Bitcoin ETFs.
Terett points out that the SEC’s approval for spot Bitcoin ETFs hinged on the belief that the CME bitcoin futures market could guard against fraud and manipulation. This level of surveillance is not yet established for XRP, casting doubt on the approval of a spot XRP ETF.
Amidst these rumors, a job listing at Ripple for a Senior Business Development Manager hinted at ETF-related initiatives, but this has not translated into tangible market movement. The price of XRP, expected to rise, has not met these speculative expectations.
Considering Ripple’s ongoing legal challenges, the SEC’s stance on XRP as a security, and the vast amount of time and resources spent by the regulatory agency, it seems unlikely that a Spot XRP ETF approval will occur in the near future. Additionally, the risk associated with the gradual release of XRP’s total supply of 100 billion into circulation may deter professional investors seeking long-term products.
