As the U.S. Securities and Exchange Commission prepares to decide on several Bitcoin ETF applications in early 2024, prominent crypto analyst Rathof Kahneman discusses the possibility of an XRP exchange-traded fund (ETF). Added consideration. Pro-ZRP influencer WoK claimed that an XRP ETF is unlikely to materialize until major developments occur.
The emergence of virtual currency ETFs
Wok explains that the emergence of crypto ETFs will lead to an increase in institutional investment in the crypto space, which will have an impact on the market. He highlighted that institutional inflows could increase volatility as it creates arbitrage opportunities between ETFs and the underlying crypto assets.
Onoging XRP lawsuit
In October 2021, Ripple was sued by the SEC alleging that the sale of XRP amounted to an offering of unregistered securities. This lawsuit is still ongoing, and WoK believes that it is unlikely that an XRP Spot ETF will be created until it is resolved. The current lawsuit against Ripple has been going on for years, and until it is resolved, it remains unclear whether the XRP Spot ETF will be approved.
Bloomberg analysts previously suggested that listing XRP futures on the Chicago Mercantile Exchange (CME) could pave the way for an XRP ETF. However, until this happens, the Wok rating will remain valid.
Discussions surrounding virtual currency ETFs
Some experts argue that crypto ETFs bring stability to the market by providing investors with a regulated and safe investment option, while increasing volatility due to arbitrage opportunities and inflows from institutional investors. Some experts believe it could lead to an increase.
