- As the only altcoin with a clear security status in the US, the call for XRP ETF increases among crypto enthusiasts.
- An ETF analyst, however, doubts the possibility of an XRP ETF getting approved by the SEC under the current US regulatory framework.
The US Securities and Exchange Commission is yet to approve its first-ever Bitcoin Exchange Traded Fund (ETF) after rejecting several applications from different firms. The recent application from BlackRock is, however, expected to get approval due to its ETF track record. According to reports, BlackRock has had 575 of its ETF applications approved with only one rejected. Some other companies including Fidelity that had their applications rejected have taken decisions to reapply.
Following the recent partial victory of XRP against the SEC, several crypto enthusiasts have called for an XRP exchange-traded fund (ETF). It is currently the only altcoin with a clear security status in the US. XRP is back on most of the exchanges that delisted it after the lawsuit was announced. The latest to relist the digital asset is the US-based crypto exchange Gemini. The recent call for XRP ETF has caught the attention of a popular ETF analyst James Seyffart, who has shared his opinion on its possibility.
Speaking on this, Seyffart stated that it would be difficult for XRP ETF to come to fruition in the US under the current regulatory framework.
Is Basket ETF the Best Option for XRP?
Another challenge is that there is no serious interest to pursue the XRP ETF according to Seyffart.
Gemini following @coinbase and listing #XRP. Been asked a few times in the last few weeks about an XRP ETF. Don’t think there’s enough to launch an XRP ETF with this SEC. And there seems to be essentially zero demand from issuers to try.
In the comment section, a user identified as Colin suggested that XRP involving its inclusion in a basket ETF could be the best option. It is important to note that a basket ETF considers a collection of cryptos rather than just one. In this case, investors are exposed to different digital assets without the need to buy and manage them individually. Also, he suggests that the crypto community focus on the ETFs of Bitcoin and Ethereum.
Reports have disclosed that there are increasing Ethereum ETF applications as six entities have already filed theirs with the SEC. According to former CFTC lawyer Mike Selig, the rising Ethereum ETF applications make sense as several firms make attempts for Bitcoin ETFs.
If a spot BTC ETF is on the horizon, a spot ETH ETF can’t be far behind. With the Hinman speech, the SEC FinHub framework, and judicial decisions in Ripple and Terraform, the case grows stronger each day that ETH is not a security, even if it was initially sold as one.
Institutional interest in XRP is reported to be on the rise following the clarity of its security status. According to an analyst identified as CRYPTOWZRD, the price has the potential to reach $8.5 in just a few months. The asset has surged by 0.29 percent in the last seven days but has declined by 0.15 percent in the last 24 hours to trade at $0.630521.
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