As the U.S. Securities and Exchange Commission prepares to decide on several Bitcoin ETF applications in early 2024, prominent cryptocurrency analyst WrathofKahneman has weighed in on the possibility of an XRP exchange-traded fund (ETF). WoK, a ZRP proponent, argued that an XRP ETF is unlikely to be viable until significant developments are made.
The emergence of cryptocurrency ETFs
Wok explains that the emergence of cryptocurrency ETFs will increase institutional investment in the cryptocurrency sector, which will impact the market. He highlights that the influx of institutional funds could lead to higher volatility as arbitrage opportunities emerge between ETFs and the underlying crypto assets.
XRP Litigation Continues
In October 2021, Ripple was sued by the SEC alleging that its XRP sales constituted an unregistered securities offering. This case is still ongoing, and until it is resolved, WoK believes it is unlikely that an XRP spot ETF will be launched.