As anticipation builds across the potential approval of the primary spot Bitcoin ETFs within the US by the Securities and Change Fee, the key phrase “XRP ETF” is presently trending on X (previously Twitter). Quite a few XRP group members have posted supposed proof that an ETF within the US is on its means and will quickly develop into a actuality. Nonetheless, a more in-depth examination reveals a extra nuanced actuality.
Why is $XRP ETF trending? 👀
— XRPcryptowolf (@XRPcryptowolf) January 7, 2024
XRP ETF Is Trending
Good Morning Crypto just lately stated, “JUST IN: Constancy Unveils XRP ETP !?! With Grayscale & Constancy providing XRP merchandise, 2024 might be the breakout 12 months for XRP because it inches nearer to all-time highs.” Equally, XRP CAPTAIN introduced, “BREAKING: Spot XRP ETF is for actual,” whereas CryptoGeek claimed, “BREAKING: XRP ETF CITED TO BE RELEASED IN A ‘MATTER OF WEEKS’ FOLLOWING BITCOIN ETF APPROVAL BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.”
BREAKING 🚨🚨 SPOT #XRP ETF Is For Actual 💥💥🚀🚀🚀 pic.twitter.com/Up2sA9jbDK
— XRP CAPTAIN (@UniverseTwenty) January 7, 2024
The foundation of those claims lies in an XRP ETP from 21Shares (previously Amun), which is obtainable on Constancy Investments’ platform. This growth has generated important pleasure inside the XRP group. Nonetheless, the narrative round a US-launched ETF is deceptive.
The thrill partly stems from Grayscale’s current choice to reincorporate XRP into its Grayscale Digital Massive Cap (GDLC) fund, following Decide Analisa Torres’ July 2023 ruling that categorised XRP as a non-security. This ruling reversed Grayscale’s earlier elimination of XRP in January 2020 amid authorized controversies over its safety standing. This transfer by Grayscale has fueled hypothesis about an upcoming ETF from the agency.
However opposite to circulating claims, Constancy has not launched an XRP ETP. Constancy’s platform solely showcases the XRP ETP launched by Swiss monetary establishment Amun AG in April 2019. This product, initially referred to as AXRP and later rebranded to 21Shares, is obtainable on the SIX Swiss Change. Furthermore, it isn’t a US-registered ETP.
In the meantime, it’s backed by bodily XRP and managed by Coinbase Custody. Remarkably, the product is 100% backed by bodily XRP and information $49,325 million in property below administration (AUM).
Why A XRP ETF Gained’t Occur Anytime Quickly
Relating to the potential of an XRP ETF within the US, Bloomberg ETF skilled James Seyffart supplied a sobering perspective just a few months again in response to rumors a few faux BlackRock XRP ETF which initiated a 15% pump that was shortly erased. In an interview, he stated: “I don’t assume that XRP is ever going to get by means of the SEC’s doorways, basically not anytime quickly, even after that loss [Ripple vs. SEC].
He added, “To begin with, CME must listing XRP futures earlier than a futures ETF would launch, and I can’t think about them permitting them a spot XRP ETF anytime quickly. However once more, like I mentioned, three weeks in the past I mentioned I didn’t assume Ethereum futures ETFs could be coming anytime quickly until there’s an enormous change within the SEC, so theoretically it might be. However the SEC has mentioned in that Terra case and a number of different instances that they consider Decide Torres received it mistaken.”
In abstract, whereas the XRP group’s pleasure is palpable, the fact of an ETF within the US stays distant, with regulatory hurdles and the SEC’s stance posing important challenges.
At press time, XRP traded at $0.55178.
Featured picture from Shutterstock, chart from TradingView.com
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