The Impending Arrival of Crypto ETFs
According to influential crypto analyst WrathofKahneman, the forthcoming decision on Bitcoin ETF applications by the US SEC has raised discussions about the possible creation of an XRP exchange-traded fund. He believes that the influx of institutional funds from the arrival of crypto ETFs will result in heightened volatility as arbitrage opportunities emerge between the ETF and the underlying crypto assets.
The Ongoing XRP Lawsuit
Since October 2021, XRP has been embroiled in a legal battle with the SEC over unregistered securities offering allegations. The case is ongoing and, according to WrathofKahneman, until it is resolved, an XRP spot ETF is unlikely to materialize. The lengthy legal battle has cast uncertainty over the potential approval of an XRP spot ETF, despite previous suggestions that the listing of XRP futures could pave the way for the ETF.
The Debate Over Crypto ETFs
There are varying opinions on the impact of crypto ETFs. While some experts argue that it will bring stability to the market through regulated investment options, others believe that it may result in increased volatility due to arbitrage opportunities and institutional inflows.
Hot Take
The potential for an XRP ETF remains uncertain, mainly dependent on the resolution of the ongoing legal battle between XRP and the SEC. Until then, the volatility of the crypto market may increase due to arbitrage opportunities and institutional involvement.
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