- Anticipation of spot Bitcoin ETFs by the SEC could pave the way for future XRP ETF applications.
- Regulatory hurdles and the need for XRP futures on CME stand out as key challenges to XRP ETF approval.
The approval of the first Bitcoin ETFs by the Securities and Exchange Commission (SEC) could mark a major interest for the cryptoasset investment sector, with a particular focus on other major digital assets such as Ethereum and XRP.
While there are currently several Ethereum spot ETF applications under review by the SEC, the situation for XRP ETFs is notably different, with no applications having been filed todate.
However, the picture could change quickly, according to Steven McClurg, Chief Investment Officer at Valkyrie Investments, which is among the 11 applicants awaiting approval of its spot Bitcoin ETF.
Prospects for an XRP ETF
McClurg’s statements in Bloomberg Crypto on the prospects for a spot XRP ETF suggest imminent change. Grayscale’s inclusion of Ripple in one of its exchange-traded funds is an indicator that we could see applications for XRP ETFs soon.
This anticipation is based on recent progress and growing interest within the crypto community, evidenced by the trending of the term “XRP ETF” on social media.
Regulatory Challenges and Considerations
However,the possibility of an XRP ETF faces significant hurdles, especially due to the regulatory environment in the U.S. The need for the CME to list XRP futures as a regulated market of sufficient size is a prerequisite that currently seems distant, according to analysis by Bloomberg ETF analyst James Seyffart .
Implications for XRP
The approval of Bitcoin ETFs and the resulting interest in ETFs for other cryptoassets such as XRP represent a significant development. While the path to approval of an XRP ETF is fraught with regulatory and technical challenges, the mere discussion of this possibility reflects a shift in perception and market openness toward cryptoassets beyond Bitcoin.
For XRP, this means a potential increase in visibility and legitimacy among institutional and retail investors, as well as the opportunity to expand its reach in the traditional financial market.
However, the success of such a venture will largely depend on how current regulatory challenges are resolved and XRP’s ability to meet market and SEC requirements.