Even without any applications on the horizon, investors were seized by an abnormal optimism and rumors of an XRP ETF emerged. Months ago, a fake registration in the name of BlackRock had targeted the price to reach its July peak, but the truth was revealed within 15 minutes, leaving insufficient time for a rise. So, will there be an XRP ETF approval this year or even next year?
Spot XRP ETF Will Not Be Approved
Even though there is no official application yet, everyone’s eyes are on XRP Coin following the ETH ETF process. There is no application other than the fake one made in the name of BlackRock, but the crypto is always prone to excessive optimism. Fox Business reporter Terett touched on this very subject and emphasized that spot XRP ETF approval would not be possible without a futures ETF approval.
Drawing a parallel with the approval of Spot Bitcoin ETFs, Terett argues that regulatory approval will only be possible after futures products are approved. Moreover, the SEC is currently hesitant to approve a spot ETH ETF even though futures ETH ETFs are being traded.
“To have a Spot XRP ETF, there first needs to be a futures ETF. Part of the approval of BTC spot ETFs was the SEC’s conclusion that the CME bitcoin futures market would provide sufficient surveillance against fraud and manipulation, which we could not say.”
Spot XRP ETF
These days, the ETF rumor fueled by a job listing for Ripple’s Senior Business Development Manager cannot go beyond speculation. Indeed, the price, which was expected to jump from $0.5, confirms that even this was not achieved. The mentioned job listing included responsibilities that would further assist the rumors, including conducting ETF initiatives related to the cryptocurrency.
However, Ripple’s ongoing public offering plans, the yet-to-start collective appeal process, the SEC’s insistence that XRP is a security, and the years of effort and money spent by the regulatory agency suggest that Spot XRP ETF approval may not come in the next few years.
Moreover, the continued entry into circulation of the 100 billion maximum supply over the years is quite risky for an ETF. Professional investors may not want to focus on long-term goals and demand such a product while the massive supply with an uncertain increase remains in place.
