Spot XRP ETF discussions are gradually emerging in the crypto community following the approval of the spot Bitcoin ETF products, with some projecting Q1 2024 as a possible timeline.
The crypto community recently witnessed the accelerated approval of all 11 spot BTC ETF products by the U.S. SEC. Following the approval, industry commentators have turned their attention to ETFs backed by other cryptocurrencies, such as Ethereum (ETH) and XRP.
What Next After an Ethereum ETF?
Notably, the spot Ethereum ETF is already in the works, as leading asset managers BlackRock, Ark Invest, VanEck, and Fidelity have already filed for the product. The SEC is expected to make its first final decision on the filing from Ark Invest and 21Shares in May.
With the speculation of a possible spot ETH ETF building up, some pundits have also focused on a spot XRP ETF. These commentators cite XRP’s unique legal clarity as a strong basis for the possible launch of the investment product.
Lark Davis, the Bitcoin (BTC) investor behind The Crypto Lark brand, recently predicted that the approval of a spot in the XRP ETF could be one of the major highlights of 2024. According to him, this development is possible as XRP has secured an identity as a non-security.
Ethereum spot ETFs coming in May (first final deadline from SEC)!
ETH futures already approved… so that means ETH is already classified as not a security.
EIP 4844 coming to lower layer two fees big time!
Bitcoin halving coming…
Probably an XRP ETF as it is also not a…
— Lark Davis (@TheCryptoLark) January 13, 2024
Moreover, in a YouTube video, crypto influencer Ben Armstrong, formerly part of the BitBoy Crypto brand, also asserted that an XRP ETF could be in the works. According to him, following an Ethereum ETF, the next crypto asset that could get an ETF is XRP, not Cardano or Solana.
Citing anonymous sources, Armstrong suggested launching the product after Ethereum gets an approved ETF product. He also called attention to a possible Ripple IPO, stressing that all these developments could occur in Q1 2024 before Bitcoin halving in April.
Is a Spot XRP ETF Feasible?
Following the approval of BlackRock’s iShares BTC ETF (IBIT) alongside the ten other spot Bitcoin ETF products, BlackRock CEO Larry Fink granted an interview with Fox Business.
During the interview, Fox Business’ Charles Gasparino asked about the possibility of the asset manager launching a spot XRP ETF.
Fink’s response to the question suggested that he was uncomfortable discussing the issue. “I can’t talk about that,” he remarked. The reply triggered mixed reactions, as some asserted that the product was likely in the works, but it was not yet time to make it public.
However, others speculated that the response might indicate that the thought of an XRP ETF from BlackRock was not even conceivable. Another optimistic camp believes Fink’s reply suggests that BlackRock might consider it in the future.
Whatever the case, no asset manager has filed or shown interest in a spot XRP ETF, a reality that has left many surprised, considering XRP is the only asset with legal clarity in the U.S. Some pundits point to the ongoing SEC lawsuit against Ripple as the factor stopping the filing of the product.
Recall that last week, Valkyrie’s Chief Investment Officer (CIO) Steve McClurg pointed to the possibility of a spot XRP ETF now that Bitcoin has secured its own product, as previously reported by The Crypto Basic.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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