7 months ago
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Since the Spot Bitcoin Exchange-Traded Funds (ETFs) were approved, market experts have continued to give their opinions on the possibility of other crypto ETFs, such as an XRP ETF launching soon. Ripple’s CEO Brad Garlinghouse has now joined the conversation, as he recently commented on whether or not the market could witness other crypto funds soon enough.
“There Will Be Other ETFs”
Garlinghouse mentioned during an appearance at the Paris Blockchain Week that he “thinks there will be other ETFs.” However, he added that this will take “a little bit of time” because of the Securities and Exchange Commission’s (SEC) reservations about crypto assets. The Commission is known for its enforcement actions against several crypto projects, including Ripple.
Meanwhile, Garlinghouse further suggested that XRP would be among those crypto assets with its ETF when the time comes, as he noted that XRP and Bitcoin were the only crypto tokens with regulatory clarity. XRP achieved this status following Judge Analisa Torres’s ruling that the crypto token wasn’t a security.
Unlike Garlinghouse, some other market experts haven’t sounded optimistic about whether an XRP ETF could come soon. Van Buren Capital’s general partner, Scott Johnsson, mentioned that the SEC’s likelihood of approving an XRP ETF is “very slim.” He further opined that Gary Gensler will need to be replaced before the SEC can approve an XRP ETF.
Ark Invest’s CEO Cathie Wood also once predicted that there would only likely be Bitcoin and Ethereum Spot ETFs in the US, thereby shoving aside the idea of an XRP ETF. Back then, she mentioned that it would be surprising to see “anything but Bitcoin and Ether being approved by the SEC,” possibly due to the SEC’s non-recognition of other crypto assets besides those two.
What Needs To Happen Before An XRP ETF Can Launch
In addition to the SEC’s reservations about the XRP token, Bloomberg analyst James Seyffart highlighted another factor that could impede the launch of an XRP ETF. He stated that the absence of XRP on a regulated market like the Chicago Mercantile Exchange (CME) makes it more unlikely for the SEC to approve an XRP ETF.
His comment relates to the fact that the SEC previously rejected the applications for a Spot Bitcoin ETF on the grounds that they were susceptible to market manipulation. However, in the Grayscale case, the court ruled that the spot and futures markets were correlated. This paved the way for the subsequent approval of these funds since Bitcoin futures were already listed on the CME.
Therefore, the potential listing of XRP futures on the CME could also pave the way for XRP ETFs since issuers can argue that the CME, being a regulated market, can help prevent market manipulation.
Featured image from Forkast News, chart from Tradingview.com
