XRP Spot ETF Approval Heats Up as Ripple's Momentum Fuels Optimism

Major cryptocurrency exchange-traded funds (ETFs) have been making waves in the financial world, and now the rumor mill is churning with speculation about the possible approval of a spot-based XRP ETF. Several analysts have predicted that such a development could occur as early as this year.

Among those closely following the ETF scene is Nate Geraci, who has expressed optimism about the Securities and Exchange Commission (SEC) giving the green light for XRP, especially given the recent regulatory breakthroughs in the crypto sector.

The anticipation for an XRP ETF stems in part from statements made by Ripple President Monica Long, who recently suggested that XRP could be next in line for spot ETF approval following Bitcoin and Ethereum. This has undoubtedly fueled the enthusiasm among XRP investors, particularly after Ripple’s partial legal victory against the SEC. The case has marked a turning point for the token, enhancing its reputation and acceptance among institutional investors.

Moreover, Ripple CEO Brad Garlinghouse has consistently maintained his confidence in the inevitability of a spot XRP ETF throughout 2023. Industry insiders believe that such a product would attract significant interest, given XRP’s utility and established market presence.

Leading Contenders for XRP Spot ETF Applications

As the anticipation builds, several high-profile firms have already filed applications for XRP-based ETFs. Among the notable names are:

1. BlockFi

2. VanEck

3. Fidelity

4. ProShares

These firms are banking on the growing institutional interest in digital assets and the potential easing of regulatory pressure under the Biden administration.

However, challenges still lie ahead. The SEC has shown caution toward altcoin ETFs, and XRP still faces lingering regulatory uncertainty due to the Ripple vs. SEC case. While the current administration is considered more crypto-friendly, experts like Axios’ Nathan Bomey warn that the SEC may not grant blanket approvals for the sector.

Interestingly, Bloomberg’s Eric Balchunas recently stated that Litecoin (LTC) or Hedera (HBAR) might beat XRP to the punch when it comes to U.S.-based spot ETF approval. Both tokens boast strong use cases and are viewed as less contentious in regulatory circles compared to XRP.

Another development to watch is ETF giant BlackRock, which has enjoyed immense success with its Bitcoin spot ETF. According to the Financial Times, the firm has ruled out immediate plans to expand into altcoin ETFs. This decision may leave space for smaller players to dominate the XRP ETF market if approval is granted.

Solana ETFs Also in the Mix

In addition to XRP, Geraci predicts the SEC will likely approve multiple Solana-based ETFs, further diversifying the crypto ETF landscape. Solana’s strong growth trajectory and widespread developer adoption make it an attractive candidate for institutional investment.

What’s Next for XRP?

As the SEC continues to deliberate on the fate of crypto-based ETFs, XRP remains a key player to watch in 2024. The growing momentum in the sector bodes well for the digital asset investment products, and only time will tell what lies ahead for the anticipated XRP ETF.