Analysts Cast Doubt on Prospect of XRP Exchange-Traded Fund Approval
Summary:
Despite interest from Exchange-Traded Fund (ETF) issuers, analysts believe the prospect of launching an ETF for XRP is slim. Factors contributing to this skepticism are the ongoing case between Ripple Labs and the Securities and Exchange Commission and the absence of approved XRP futures ETF. Ripple CEO Brad Garlinghouse's elusive comments about an upcoming ETF fueled optimism amongst investors, despite BlackRock dismissing plans for a spot XRP ETF. The focus remains on approvals for spot Ether (ETH) ETFs, predicted to reach a likelihood of 70% by May.
Analysts are suggesting that the possibility of launching an Exchange-Traded Fund (ETF) for XRP is slim, despite interest from ETF issuers. The current legal battle between the Securities and Exchange Commission and Ripple Labs over its XRP tokens, combined with a lack of any previously approved XRP futures ETF, curbs the likelihood for a spot XRP ETF approval. Townsend Lansing, Product Head at CoinShares, suggested that for an XRP ETF to become viable, the SEC must acknowledge XRP as not being a security. The ongoing dispute between Ripple and the SEC is due to continue with a trial set for April 23.
Scott Johnsson, a general partner at Van Buren Capital, shares this scepticism, suggesting a leadership change at the SEC might also be necessary for an XRP ETF approval. Bloomberg ETF analyst James Seyffart, in a recent interview, was equally cautious about the likelihood of an XRP ETF being released this year, citing the SEC's ongoing case with Ripple as a major deterrent. He also pointed out the absence of any approved XRP futures ETFs in the U.S.
Despite this, XRP investors remain optimistic. Ripple CEO Brad Garlinghouse's recent elusive comments when questioned about a potential ETF at the World Economic Forum fueled this hope. Nevertheless, news that BlackRock has no plans to launch a spot XRP ETF, as reported by Fox Business's Charles Gasparino, curbed this optimism.
In related news, Franklin Templeton’s digital asset leader, Sandy Kaul, mentioned on Jan.11 that they plan to offer more crypto investment opportunities to their clients, thereby raising hopes of more digital asset-related ETFs filings in the future. While speculation continues about the possibility of an XRP fund, industry insiders are focusing on the potential approval of spot Ether (ETH) ETFs, with Eric Balchunas from Bloomberg estimating the likelihood of approval at 70% by May.
Published At
1/24/2024 3:12:17 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.