About 18 hours ago, XRP Coin became a hot topic due to billion-dollar fake transfers, but there’s a more significant issue at hand. Beyond the fake transfers, cryptocurrency investors have started to become optimistic about a spot XRP ETF. We last experienced major activity in this area months ago with the fake application news that caused the XRP Coin price to plummet.
Will There Be a Spot XRP ETF?
Although some sources mention potential launch dates, there is no official step taken for a spot XRP ETF. Moreover, considering the ongoing SEC lawsuit, it’s unlikely that such a development will occur in the medium term. If we consider that even Bitcoin‘s approval came after a 10-year process and the victory of GBTC, you can imagine how difficult it would be for XRP, which even seems challenging for ETH.
At best, the XRP Coin lawsuit is expected to conclude by the end of 2024, possibly in the last quarter. If we consider that the SEC would have a 6-month period for the ETF application, it doesn’t seem possible before the end of the first quarter of 2025. On the other hand, Ripple’s IPO, along with the trading of XRP Coin ETFs in the stock markets, could pose significant problems.
If Ripple’s success is going to increase the price of XRP Coin, why should Ripple shares and XRP ETFs exist simultaneously? Or why would people hold XRP Coin instead of buying Ripple shares? Conversely, you could think the opposite. This also confirms that XRP Coin is considered a security/investment contract according to a part of the Howey test.
XRP Coin Commentary
Santiment reported an increase in optimistic sentiment towards XRP following the SEC’s approval of a Spot Bitcoin ETF, which could be a parallel to Bitcoin’s historic moment. This could be the result of expectations for the ETF, which we explained earlier as unlikely in the medium term.
According to Santiment, sentiment towards XRP has reached “extremely optimistic” levels. We can say that the recent court decision declaring XRP as not a security has also supported this optimism. This tendency, which could lead to speculative price movements, increased even more after BlackRock CEO Larry Fink responded with “I can’t discuss that” when asked about an XRP ETF.
Steve McClurg, co-founder of Valkyrie Funds, mentioned that spot XRP ETFs wouldn’t surprise him. However, Charles Gasparino believes that skepticism is the best approach to all this.
“There’s something to keep in mind about the question I asked Larry Fink about launching an XRP ETF and his not-so-serious answer; Fink may not even know that XRP exists as a cryptocurrency.”
