Why XRP ETF Approval Could Be Imminent?
The post Why XRP ETF Approval Could Be Imminent? appeared first on Coinpedia Fintech News
The crypto community is looking forward to the case for an XRP ETF, especially after the latest approval of Ethereum spot ETFs. Crypto strategist Nick recently made a detailed post on X, identifying various factors that could serve as catalysts to launch an XRP ETF. His insights, combined with the prevailing developments, paint a bright picture for XRP’s future.
XRP Catalysts
Popular crypto strategist Nick has highlighted several factors that could result in the approval and success of an XRP ETF. His analysis and prevailing developments paint a bright picture for XRP’s future.
Nick’s analysis has identified multiple key factors that could drive the approval and success of an XRP ETF.
It considers the growing narrative around tokenizing real-world assets (RWA), Ripple’s anticipated initial public offering (IPO), the development of a Ripple-backed stablecoin, and the regulatory clarity on institutional sales of XRP.
Besides this, strategic partnerships, prevailing amendments to the XRP Ledger (XRPL), and increasing adoption of XRPL for various applications further strengthen XRP’s position.
Nick added, “The amount of possible catalysts behind $XRP is insane,” referencing the multiple factors that can drive XRP towards massive institutional support and build the foundations for an ETF.
He once again emphasized the importance of these developments, especially in the backdrop of the Ethereum ETF approval, which he believes will shift the regulatory landscape for altcoins.
Institutional Adoption and Market Dynamics
Standard Chartered analyst Geoffrey Kendrick has also weighed in, predicting that cryptocurrency ETFs for coins like XRP and Solana could be approved by 2025.
He noted that the SEC had recently approved ETH ETFs, which would mean that cryptocurrencies similar in nature would not be deemed securities. “The crypto industry now seems to have political backing on both sides of the aisle,” said Kendrick, adding that the sector had bipartisan support.
Kendrick expects the approval of ETH ETFs to bring heavy institutional capital into the space, possibly benefiting other coins such as XRP. He estimates ETH ETFs could attract between $15 billion to $45 billion in the first 12 months of trading. This could further drive the market dominance of Bitcoin and Ethereum, and that effect could spread to XRP.
There are, however, hurdles on the way to an XRP ETF.
Ripple and the SEC are in an ongoing lawsuit. Still, the recent regulatory clarity that Ethereum is not a security may lead to similar decisions on other tokens, including XRP. The growing political and institutional support for cryptocurrencies only adds to the optimism.
The SEC’s approval of the Ethereum spot ETF marks a significant regulatory milestone, paving the way for similar recognition for altcoins like XRP. As institutional interest in digital assets grows, the likelihood of XRP ETFs increases. This momentum will be further accelerated by relisting XRP on major exchanges, developments in the Ripple ecosystem, and the prospect of new financial products.
Crypto analyst Nick encapsulates this sentiment: “Although XRP gets a ton of hate, and the frustration is at ATHs already, the pressure is building.”
Many voices from within the crypto community echo such views and opinions, in which XRP is seen to benefit from the regulatory clarity and institutional adoption that an Ethereum ETF approval would bring.
Filed under: Bitcoin - @ May 25, 2024 10:08 am