A prominent member of the XRP community, XRPcryptowolf, sees zero chance of a spot XRP exchange-traded fund (ETF) making its debut on Wall Street throughout 2024.
Spot XRP ETF Won’t Become A Reality Anytime Soon
It took the U.S. Securities and Exchange Commission (SEC) over a decade to give spot Bitcoin ETFs the greenlight, and XRP ETFs would likely face even more hurdles than BTC did.
In a Jan. 29 post on X, a user going by the online alias XRPcryptowolf told his 319,600 followers that the cryptoverse is unlikely to see spot XRP ETF products introduced this year.
A spot XRP ETF going live this year “would be way too soon,” XRPcryptowolf posited, noting that Bitcoin ETFs took several years to secure regulatory approval from the SEC.
It’s pertinent to mention that a long-running lawsuit from the SEC against Ripple and the lack of an already approved XRP futures-based ETF in the U.S. would reduce the likelihood of a spot XRP ETF approval. For the SEC to OK spot XRP ETFs, the Wall Street regulator would have to essentially concede that the Ripple-promoted token is not a security — which is unlikely to happen.
In November 2023, the price of XRP leapt to as high as $0.73 in minutes after reports circulated online that BlackRock, the world’s biggest asset manager, had filed for an XRP ETF in the U.S. state of Delaware, suggesting that the company was prepping to introduce an XRP ETF after applying to launch Bitcoin and ether ETFs. The sixth most-valuable token quickly plummeted back to previous levels after the application turned out to be bogus.
Earlier this month, BlackRock CEO Larry Fink was seen as playfully evasive when asked by Fox Business’ Charles Gasparino if the financial giant was eyeing a spot XRP ETF. Enthusiasts presumed that this meant a spot XRP product was on the horizon. However, hopes were later crumbled after Gasparino claimed BlackRock has no plans for such an investment vehicle, citing anonymous individuals with “direct knowledge of the matter.”
Whether an XRP ETF is on the horizon or not, the cryptosphere is focused on the likely spot ether (ETH) ETFs, with the senior ETF analyst at Bloomberg, Eric Balchunas, estimating there is a 70% chance of approval by May.