With the launch of the first crypto-based exchange-traded fund (ETF) in the United States, investors are now looking forward to the next digital asset trading product.
When asked about the possibility of an XRP (XRP) ETF, CME Group Senior Managing Director Tim McCourt said the first big steps have been taken.
In a panel discussion at Ripple Swell 2024, McCourt said:
“We have an XRP reference rate and real-time index. This is the first step in building this ecosystem.” […] There are over 50 real-time prices and reference rates. This is important for product providers like Bitwise. Because they can at least point to fully regulated benchmarks. ”
McCourt's comments come a week after the Securities and Exchange Commission received a second application for an XRP ETF from Canary Capital. According to He told Bloomberg ETF analyst Eric Balchunas.
Canary XRP ETF filed with SEC. Source: Eric Balchunas
Canary was the second provider to apply for an XRP ETF, following Bitwise Asset Management.
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ETFs accelerate the growth of the crypto industry
The emergence of the first spot Bitcoin (BTC) and Ether (ETH) ETFs marked a turning point in the cryptocurrency industry and helped legitimize the sector.
McCourt said the introduction of ETFs has significantly accelerated industry growth.
“This ecosystem has really accelerated, so I don't think it's a coincidence that the largest open interest and volume-based futures have come after the emergence of ETFs.”
Panel discussion. Ripple swell. Source: Cointelegraph
Despite the enthusiasm for a potential XRP ETF, the token's price has struggled to gain traction amid a broader rally in the crypto market.
According to data from Cointelegraph, the price of XRP has increased by just over 8% over the past year, while the price of Bitcoin has increased by more than 154% during the same period.
1 year chart of XRP and BTC. Source: Cointelegraph
ETFs can significantly drive up the price of the underlying cryptocurrency. In the case of Bitcoin, spot ETFs accounted for about 75% of new investments in the cryptocurrency by February 15, when Bitcoin surpassed the $50,000 level.
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Which came first: XRP or SOL ETF?
Beyond XRP, the uncertain possibility of the Spot Solana (SOL) ETF has also generated excitement among crypto investors, who see it as a potential price catalyst.
Brazil's first Solana ETF was approved on August 7, setting a precedent for other global jurisdictions.
The US-based spot Solana ETF remains uncertain, but its outlook could be a price catalyst, according to Alejo Pinto, former IBM blockchain growth leader and founder of Solana layer 2 network Lumio. It is said that there are enough.
Pinto told Cointelegraph:
“There is still so much uncertainty that if the ETF is approved in the U.S., which is unlikely and has not yet been priced in, it would have a positive impact on Solana prices.”
Others, including Manthan Dave, co-founder of Ripple-backed digital asset custody platform Palisade, expect to launch a Solana ETF as early as the end of 2024.
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