Potential Shift Towards Ethereum and XRP ETFs
Following the potential approval of the first spot Bitcoin ETFs in the United States by the Securities and Exchange Commission (SEC), the crypto investment sector is poised for a potential shift towards other significant digital assets, notably Ethereum and XRP. While the SEC currently has several applications for spot Ethereum ETFs under review, the situation for XRP ETFs is notably different, with no applications filed to date.
XRP ETF Filings Could Be Submitted To The SEC Soon
In a TV appearance for Bloomberg Crypto, Steven McClurg, Chief Investment Officer at Valkyrie Investments, commented on the prospects for a spot XRP ETF. McClurg mentioned that he expects to see filings for Ethereum ETFs and even potentially Ripple (XRP) given recent progress. He referred to Grayscale’s addition of Ripple to one of their publicly traded trusts as a sign of potential interest. However, he also stated that Valkyrie Investments hasn’t decided if they will pursue such products.
Crypto Community Interest in XRP ETF
The crypto community has shown heightened interest in the possibility of an XRP ETF. This was partly ignited by Grayscale Investments’ decision to reintegrate Ripple into its Grayscale Digital Large Cap (GDLC) Fund. However, reports suggesting that Fidelity Investments has introduced an XRP Exchange-Traded Product (ETP) are inaccurate. Fidelity’s platform features 21Shares’ XRP ETP, listed on the Swiss Exchange SIX and not registered in the United States.
A Major Hurdle
While there is optimism surrounding the potential for an XRP ETF, not all experts believe it will come to fruition. Bloomberg ETF analyst James Seyffart expressed skepticism, stating that he doesn’t think XRP will get through the SEC’s doors anytime soon. He explained that before considering an XRP ETF, the Chicago Mercantile Exchange (CME) would need to list XRP futures as a regulated market of sufficient size, which currently seems distant.
Hot Take: The Prospects for XRP ETFs
The approval of spot Bitcoin ETFs by the SEC has raised hopes for the expansion of cryptocurrency investment products. While Ethereum ETFs are already under review, the possibility of XRP ETFs remains uncertain. Steven McClurg of Valkyrie Investments believes that filings for XRP ETFs could be submitted soon, given recent progress in the industry and growing interest in Ripple. However, not all experts share this optimism, highlighting regulatory hurdles and market readiness as significant challenges. As the crypto community eagerly awaits further developments, it remains to be seen if XRP will join Bitcoin and Ethereum in the realm of ETFs.
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