Expert Says It’s Strange That XRP Doesn’t Have a Spot ETF Application Despite Legal Clarity

The expert considers it strange that there is still no application for a spot XRP exchange-traded fund (ETF) despite the coin receiving legal clarity. 

Founder of Dizer Capital, Yassin Mobarak, has expressed concern over the absence of a spot exchange-traded fund (ETF) application for XRP. 

BlackRock Files for a Spot Ethereum ETF 

Notably, the quest to launch a spot ETF for crypto assets intensified yesterday after the world’s largest asset manager, BlackRock, filed an application with the U.S. SEC to roll out a spot-traded Ethereum fund. 

The asset manager had previously applied to launch a spot bitcoin ETF, joining other top financial institutions like Fidelity Investments and Grayscale in the race. 

Dizer Capital Founder Reacts 

Following BlackRock’s recent application, Mobarak said he finds it odd that there is still no spot ETF application for XRP, a coin he described as the only asset with legal clarity. 

Many applications for BTC spot ETF and now there's a new ETH spot ETF application.

I find it peculiar that there's no spot ETF application for the only crypto with actual legal clarity. That crypto is $XRP. https://t.co/QeZDP3jl7J

— Yassin Mobarak ? (@Dizer_YM) November 11, 2023

SEC Lawsuit Still Affecting XRP  

Recall that XRP recorded a major victory on July 13 after a New York federal court rejected the SEC’s claim about the asset. In the landmark ruling, Judge Torres declared that XRP in itself is not a security. 

Interestingly, the SEC did not challenge the court’s declaration about XRP during its push to certify an interlocutory appeal. 

Although the SEC did not signal its intention to challenge the security status of XRP, the ongoing lawsuit has continued to affect the chances of a top financial institution applying to offer a spot XRP ETF in the United States. 

The lawsuit has continued to linger, with the case set to enter the remedies phase. As reported yesterday, the SEC and Ripple submitted a letter to the court, proposing a schedule for the remedies briefing and discovery. 

The remedies phase of the lawsuit will determine the appropriate penalty Ripple may face for violating securities laws via its $770 million worth of XRP sales to institutional clients. 

While the SEC wants the entire $770M as fine, Ripple could attempt to reduce the penalty by subtracting its legitimate business expenses. In the meantime, the court has yet to issue a decision regarding the recently submitted proposal for the remedies phase of the lawsuit.