As a researcher with experience in the cryptocurrency industry, I’m excited about the potential launch of a spot XRP ETF in the US. The approval of BTC and Ethereum (ETH) ETFs has shown that there is growing interest from investors to gain exposure to digital assets through regulated financial products. Ripple’s CEO Brad Garlinghouse’s comments suggesting the inevitability of a spot XRP ETF further fuel this speculation.
TL;DR
- The approval of spot BTC and ETH ETFs has led to speculation about the potential launch of a spot XRP ETF in the US, with Ripple’s CEO Brad Garlinghouse suggesting it’s “inevitable.”
However, the ongoing legal battle between the company and the SEC over allegations of unregistered securities offerings might complicate the green light of such a financial product.
Is XRP ETF Coming Next?
Since early 2024, the cryptocurrency market has experienced remarkable growth. Bitcoin (BTC), for instance, reached a new record-breaking price of more than $73,700 in mid-March and continues to trade above $70,000. This surge can be partially explained by the introduction of specific financial products that were previously unavailable in the US market several months prior.
The SEC approved the sale of BTC spot ETFs back in January. More recently, in the previous month, they also granted approval for selling spot ETFs based on Ethereum.
Investing in these financial instruments grants access to digital assets for investors without the need to buy them directly from cryptocurrency exchanges. They streamline the investment procedure and reduce certain risks linked to managing cryptocurrencies, such as self-custody.
As a crypto investor, I’ve noticed an increasing buzz in the industry over the past few months about the potential approval of a spot XRP Exchange-Traded Fund (ETF) in the US. Ripple’s CEO, Brad Garlinghouse, even went on record stating that such a product, along with Solana and Cardano ETFs, is “inevitable.”
Lately, he strongly reaffirmed his position, implying that investors are in search of diversified exposure to a variety of ETFs beyond those solely based on Bitcoin and Ethereum as underlyings.
In my opinion, it’s a logical conclusion. One shouldn’t limit their investment to just one type of asset exposure. It’s important not to overlook the fact that XRP used to be the second most valuable digital asset before regulatory involvement.
In February of this year, Garlinghouse expressed his support for the possible introduction of a spot XRP Exchange-Traded Fund (ETF) in the US market. However, during an outline of his company’s strategic plans for the next three years that followed, the launch of such an ETF did not feature as a top priority.
The Difficulties With the SEC
As an analyst, I’d like to point out that the Securities and Exchange Commission (SEC) holds the authority to approve or reject financial products, including cryptocurrencies, in the United States. With regard to recent developments, those keeping tabs on the crypto industry should be familiar with the ongoing legal dispute between the regulatory body and Ripple. This trial phase has now commenced.
Back in December 2020, I found myself caught up in some troubling news when the SEC (Securities and Exchange Commission) accused Ripple, along with certain executives, of illegally raising over $1.3 billion through an unregistered securities offering by selling XRP. However, despite these allegations, Ripple managed to secure three partial court victories throughout last year. Some analysts believe that we’re now in a strong position to secure a decisive victory in this ongoing battle.
As an analyst, I’ve observed that XRP‘s price experiences significant surges following each triumph in legal battles. Consequently, the eventual resolution of ongoing lawsuits could potentially cause heightened volatility once more. For those eager to delve deeper into the lawsuit’s intricacies and its implications for XRP’s value, please explore our dedicated video below.
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2024-06-06 08:40