As the U.S. Securities and Exchange Commission prepares to rule on several Bitcoin ETF applications in early 2024, prominent crypto analyst WrathofKahneman weighed in on the potential for an exchange-traded fund (ETF) XRP. WoK, a pro-ZRP influencer, claimed that the realization of an XRP ETF is unlikely until a significant development occurs.
The arrival of crypto ETFs
Wok explains that the arrival of crypto ETFs will lead to an increase in institutional investments in the crypto space, which will impact the market. He points out that the influx of institutional funds could lead to increased volatility as arbitrage opportunities emerge between the ETF and the underlying crypto assets.
The Onoging XRP Lawsuit
In October 2021, Ripple was the subject of an SEC lawsuit alleging that sales of XRP amounted to an unregistered securities offering. The case is still ongoing and until it is resolved, WoK believes that a spot XRP ETF is unlikely. This now remains uncertain as the lawsuit against Ripple has been going on for years and until it is resolved, it is unclear whether a spot XRP ETF will be approved or not.
Bloomberg Analyst previously suggested that the listing of XRP futures on the Chicago Mercantile Exchange (CME) could pave the way for an XRP ETF. However, until that happens, Wok’s assessment remains valid.
Crypto ETF Debate
Some experts say crypto ETFs will bring stability to the market by providing investors with regulated and secure investment options, while others believe they could lead to increased volatility due to arbitrage opportunities and inflows. institutional.