As a seasoned researcher with a keen interest in the dynamic world of cryptocurrencies, I find myself intrigued by the recent developments surrounding XRP and potential ETFs. With two filings for XRP-based funds within a fortnight, it seems that the tide might be turning in favor of this digital asset.
On October 8th, Canary Capital submitted a proposal to the U.S. Securities and Exchange Commission for a tradable financial product linked to Ripple‘s XRP through an exchange-traded channel.
In the last two weeks, this marks the second time a fund based on XRP has been filed. This follows the submission of the Bitwise XRP ETF trust application on September 30th.
According to the company, they will monitor the value of XRP by using the Chicago Mercantile Exchange’s Ripple index provided by CME.
Bloomberg ETF analyst Eric Balchunas stated that he hadn’t encountered this particular issuer before, indicating that they seem new or inexperienced in the market.
XRP ETF Likely?
According to ETF Store President Nate Geraci, it’s more a question of ‘when’, rather than ‘if’, as he believes that the approval process will move forward. He also suggested that a shift in administration could speed up this process.
However, if things don’t change, that event is likely to happen *significantly* later on in the timeline.
This week, it was reported that Robinhood executive Dan Gallagher could potentially lead the Securities and Exchange Commission (SEC) if Donald Trump wins the presidency in November. He is known to be supportive of cryptocurrencies and more likely to favor such products compared to the current chair, Gary Gansler, who has been hesitant about approving them.
A spokesperson for Canary Finance told Fox Business:
There are positive indications of a forward-thinking regulatory landscape, along with increased investor interest in advanced opportunities within the crypto world beyond Bitcoin and Ethereum. This interest particularly revolves around gaining access to top-tier blockchain technologies and their associated tokens like XRP.
In September, Grayscale unveiled a special XRP investment vehicle, designed to mimic the price fluctuations of the digital asset. This development may pave the way for the transformation of this trust into an exchange-traded fund (ETF) that deals directly with XRP, similar to how they’ve handled their Bitcoin and Ethereum funds.
Despite their ongoing legal tussle with the Securities and Exchange Commission (SEC), Brad Garlinghouse, CEO of Ripple, remains optimistic that an Exchange Traded Fund (ETF) based on XRP is unavoidable in the future.
XRP Price Outlook
At the moment of writing, there was no immediate response observed in the XRP market prices, as the asset continued to hold steady at approximately $0.532 throughout the day.
Additionally, the Ripple cross-border transaction token has slumped 11% over the past week.
In March of 2024, XRP reached a peak of over $0.70, but it has since dropped and is now at a level that’s 84% lower than its record high of $3.40 in January 2018.
It seems like a clear-cut win over the SEC could serve as the trigger for this asset’s price increase.
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2024-10-09 10:31