XRP Spot ETF: Awaiting Futures Approval and Regulatory Clarity

XRP Could Skyrocket: Analyst Envisions 4,039% Growth to $20 or Beyond

Nate Geraci, president of The ETF Store, recently claimed that the market is not prepared to welcome an XRP spot exchange-traded fund (ETF). In an interview with Tony Edward of the Thinking Crypto podcast, Geraci assessed the likelihood of an XRP or Solana ETF by 2025. Geraci explained that launching an XRP ETF would require several key developments. Initially, it must undergo a similar approval process as Bitcoin and Ethereum, where their futures are listed on a Commodity Futures Trading Commission (CFTC)-regulated venue. 

For example, Solana or XRP futures must trade on the Chicago Mercantile Exchange (CME). Moreover, the U.S. Securities and Exchange Commission (SEC) would need to see a track record of trading an ETF listed for XRP. Therefore, an XRP futures ETF must precede a spot ETF. Consequently, the market might need several years for these developments to unfold.

Related article: XRP’s Path to $27: Analyst Sees 41% Rise Leading to $27 Target

Consensus Among Experts

Other ETF experts, such as Bloomberg’s James Seyffart, share similar views. Seyffart emphasized that the earliest timeline for other crypto ETFs, after Ethereum, is 2026. Thus, this consensus reinforces the idea that the market needs more time. Meanwhile, the co-founder of The ETF Institute suggested an alternative, quicker route for an XRP ETF. He proposed establishing a legitimate regulatory framework for crypto by the U.S. Congress. 

Related article: XRP Community React to Jim Cramer’s Verdict on SEC and Ripple

This framework should clearly define securities and commodities, and outline oversight responsibilities. If Congress implements such a framework, other crypto ETFs could reach the market much sooner. However, Geraci expressed skepticism about Congress enacting these regulations, especially in an election year.

Ripple’s CEO Offers An Optimistic View

In contrast, Ripple’s CEO, Brad Garlinghouse, believes an XRP ETF could emerge as early as next year. He remains confident that an XRP ETF is inevitable but maintains a flexible stance on the exact timeline. Despite Geraci’s skepticism, Garlinghouse’s optimism highlights differing views within the industry. Nate Geraci’s perspective reflects a cautious approach, emphasizing the need for an XRP futures ETF and regulatory clarity. 

While some experts foresee a longer timeline, legislative action could potentially accelerate the process. However, the industry remains divided on when an XRP ETF will become a reality.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

Share this :