Discussions surrounding a potential Spot XRP ETF are gaining momentum within the crypto community in the wake of the accelerated approval of spot Bitcoin ETF products, with projections hinting at a possible timeline in Q1 2024.
Following the U.S. SEC’s approval of all 11 spot BTC ETF products, attention is now shifting to ETFs backed by other cryptocurrencies like Ethereum (ETH) and XRP.
As the spot Ethereum ETF is already in progress, with major asset managers such as BlackRock, Ark Invest, VanEck, and Fidelity filing for the product, the focus is now on XRP. Some speculate that the unique legal clarity surrounding XRP could serve as a strong foundation for the launch of a spot XRP ETF.
Lark Davis, the Bitcoin investor known for The Crypto Lark brand, anticipates that the approval of a spot XRP ETF could be a significant highlight of 2024, emphasizing XRP’s status as a non-security.
Crypto influencer Ben Armstrong, formerly associated with the BitBoy Crypto brand, echoes this sentiment, suggesting that after an Ethereum ETF, XRP, and not assets like Cardano or Solana, could be next in line for an ETF. Armstrong cites anonymous sources, indicating a potential launch post Ethereum ETF approval and drawing attention to a potential Ripple IPO, all possibly occurring in Q1 2024 before Bitcoin’s halving in April.
Despite speculation and anticipation, there’s a notable absence of any asset manager filing or expressing interest in a spot XRP ETF. This has surprised many, given XRP’s unique legal clarity in the U.S. Some analysts attribute the lack of movement in this direction to the ongoing SEC lawsuit against Ripple.
In a recent interview, BlackRock CEO Larry Fink was asked about the possibility of launching a spot XRP ETF, to which he responded cautiously, not providing clear insights. This has sparked diverse reactions, with some interpreting it as a potential work-in-progress and others suggesting it might not be under consideration. The SEC lawsuit against Ripple is often cited as a key factor hindering the filing of a spot XRP ETF.
The possibility of a spot XRP ETF is further highlighted by Valkyrie’s Chief Investment Officer (CIO) Steve McClurg, who pointed to the potential now that Bitcoin has secured its own product.
