- XRP ETF approval unlikely under current SEC framework, states ETF expert James Seyffart.
- Despite recent listings of XRP on prominent exchanges, demand for its ETF appears minimal.
The XRP ETF Conundrum
The cryptocurrency market is never without its dramas, and the latest centers around the potential of an XRP exchange-traded fund (ETF). Following the recent addition of XRP to the US-based crypto platform Gemini, many have speculated about the altcoin’s ETF future. Among the voices, James Seyffart, a leading ETF analyst, offered his expert insights, essentially dampening the rising hopes.
Gemini following @coinbase and listing #XRP. Been asked a few times in last few weeks about an XRP ETF. Don't think there's enough to launch an XRP ETF with this SEC. And there seems to be essentially zero demand from issuers to try https://t.co/t3PQeqbKvI
— James Seyffart (@JSeyff) August 10, 2023
While Gemini’s move mirrored other exchanges, it led to an influx of queries directed towards Seyffart regarding the possibility of an XRP ETF, especially since XRP boasts a distinct regulatory clarity in the U.S. Seyffart took to Twitter, addressing the speculations and hinting at the improbability of an XRP ETF under the existing SEC governance. He pointed out, “Don’t think there’s enough to launch an XRP ETF with this SEC.”
Minimal Appetite for XRP’s ETF Venture
An interesting aspect of Seyffart’s observation revolves around the lukewarm interest among issuers concerning an XRP ETF. According to him, the clamor for such an investment product seems almost non-existent.
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“…there seems to be essentially zero demand from issuers to try,”
A discussion participant named Colin put forth an alternative suggestion. Rather than a standalone XRP ETF, he sees potential in XRP’s inclusion in a basket ETF. These ETFs encapsulate multiple cryptocurrencies, enabling investors to diversify their crypto portfolio without the need to individually purchase and manage each coin. Colin believes the crypto realm should remain focused on leading cryptocurrency ETFs, such as those based on Ethereum (ETH) and Bitcoin (BTC), cheekily adding that even a Dogecoin (DOGE) ETF might be on the cards.
The ETF scene is indeed abuzz with Ethereum-centric ETFs, as recent reports from The Crypto Basic have shown. Six Ethereum ETF applications were presented to the SEC earlier this month, invigorating conversations about XRP’s place in the ETF sphere. But for now, Seyffart’s perspective offers a sobering view on XRP’s ETF aspirations amidst the broader ETF developments.
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