XRP ETF: Fact or Fiction Surrounding Its Launch?
The approval of the first Bitcoin (BTC) spot exchange-traded fund (ETF) has sparked discussions about the challenges that an XRP ETF may face. Ripple CEO Brad Garlinghouse’s recent interview with Bloomberg has added fuel to the speculation surrounding the possibility of an XRP ETF. While Garlinghouse expressed cautious optimism, he did not disclose any concrete plans. Although there have been rumors about potential collaborations with major asset management firms like BlackRock, Garlinghouse neither confirmed nor denied these discussions. In contrast to the absence of an XRP ETF in the US market, European investors already have access to XRP exchange-traded products (ETPs) offered by companies such as Coinshares and 21Shares. However, launching an XRP ETF in the US is challenging due to regulatory hurdles and ongoing legal battles between Ripple and the US Securities and Exchange Commission (SEC).
The discussion about the potential introduction of an XRP ETF has generated significant activity on social media platforms, with individuals from various backgrounds sharing their opinions. One tweet from John Deaton, who coincidentally announced his run for Senator on the same day Garlinghouse discussed the XRP ETF possibility, has sparked speculation about potential connections between political ambitions and market developments. Former Ripple director Sean McBride has also offered insights, predicting the emergence of an XRP ETF by 2024 or 2025, along with a Ripple initial public offering (IPO) outside the US in 2025. Some tweets have created fear of missing out (FOMO) narratives, urging followers to hold onto their XRP holdings and suggesting that selling now would mean missing out on potential wealth.
It is important to approach such speculative claims with caution, considering the risks and uncertainties inherent in the cryptocurrency market. The legal battle between Ripple and the SEC has also generated speculation, with recent developments indicating the potential for a resolution. The SEC’s silence and lack of motions following a closed meeting have fueled rumors of a possible settlement. Garlinghouse has expressed readiness to take the lawsuit to the US Supreme Court if necessary. The legal proceedings have reached a crucial phase, with a schedule set for the remedies stage. Important dates to note include the SEC filing its remedies brief on Mar. 13, Ripple’s opposition due on Apr. 12, and the SEC’s reply to Ripple’s opposition by Apr. 29.
Legal expert Fred Rispoli has highlighted the lack of motions from the SEC as a potential sign of an unspoken agreement between Ripple and the SEC, which could lead to a settlement. The recent approval of the first BTC spot ETF after a decade-long journey highlights the regulatory hurdles and cautious approach to crypto-based financial products. Overcoming these challenges in the path to an XRP ETF seems daunting, reflecting the broader struggles of the crypto industry in gaining regulatory acceptance for innovative financial instruments. With the SEC’s focus on Ethereum ETFs, it is clear that established assets will likely take priority over XRP and others. The evolving regulatory environment will shape Ripple’s future and have implications for market trends, including XRP ETFs, Ripple’s IPO, and the crypto landscape as a whole.
