The recent approval of Spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) has sparked interest among crypto investors, leading them to wonder about the future of XRP ETFs. Could Ripple’s XRP be the next altcoin to receive approval for an ETF? Steve McClurg, Chief Investment Officer (CIO) for Valkyrie, believes it’s a possibility, and in an interview with Bloomberg, he discussed the potential impact of XRP ETFs on the market.
With the SEC’s approval of Spot Bitcoin ETFs, attention has turned to other cryptocurrencies, particularly Ethereum. McClurg suggests that many filings for Ethereum ETFs will be submitted following this development. However, beyond Ethereum, McClurg believes that XRP may also have a chance of receiving approval for an ETF. The CIO mentions that it would not surprise him to see Ripple or Ethereum spot ETFs in the near future. While Valkyrie has not shown interest in XRP so far, McClurg recognizes the unpredictable nature of the crypto market and acknowledges that asset managers may unexpectedly take an interest in XRP ETFs.
The concept of an XRP ETF is not new, and as arguments for Bitcoin Spot ETFs gained momentum, discussions regarding XRP ETFs also intensified. ABS, a crypto researcher from the 3T Warrior Academy, explains the potential impact of an XRP ETF. First, institutional investors would likely show more interest in XRP as they could easily gain exposure to the asset through an ETF. This increased interest would also help thrust XRP into the mainstream, as marketing efforts around the asset would escalate. Consequently, a potential XRP ETF would drive greater interest worldwide and contribute to the liquidity expansion for the crypto.
The market’s readiness for an XRP ETF can be evaluated based on previous events. In November, rumors spread that BlackRock had applied for an XRP ETF, causing the XRP price to surge rapidly. However, once the rumors were dispelled, the price corrected downward. Despite this, the market’s reaction demonstrated that there is indeed demand for an XRP ETF. While it may not lead to the asset reaching $100 anytime soon, the approval of an XRP spot ETF would undoubtedly accelerate the asset’s progress towards this goal.
With the recent approval of Spot Bitcoin ETFs, attention has shifted towards the possibility of XRP ETFs. Valkyrie’s CIO, Steve McClurg, believes that Ripple’s XRP could be one of the next altcoins to receive approval for an ETF. The potential impact of an XRP ETF includes increased institutional investor interest, mainstream exposure, and enhanced liquidity. Although the market’s reaction to rumors of an XRP ETF highlights the demand for such a product, it is important to note that investing in cryptocurrencies carries risks and thorough research should be conducted before making any investment decisions. Ultimately, the future of XRP ETFs remains uncertain, but the opportunity for growth and market expansion is undeniable.