XRP: Do spot ETFs mark the end for cryptocurrency?
- There's hardly any event the XRP community is looking forward to as much as the launch of spot ETFs in the US. Now analyst Adriano Feria warns that the index funds could be “the beginning of the end” for the cryptocurrency.
- His main argument: Once the ETFs launch, it will become clear that XRP will not attract significant institutional interest. This is the sobering forecast.
- Unlike the launch of Bitcoin or Ethereum ETFs, XRP has so far lacked major investors like BlackRock or Fidelity. Both asset managers have clearly rejected an index product based on Ripple's cryptocurrency. This absence is therefore a deterrent for some traders.
- Others, however, see great potential in XRP ETFs, saying they could become the most successful crypto index funds ever.
- Futures ETFs provide one argument in this context. Since trading began on the Chicago Mercantile Exchange (CME), these financial products have achieved open interest of one billion US dollars—a historic record.
- Nominally, XRP ETFs are unlikely to match the billion-dollar inflows of Bitcoin and Ethereum. Based on market capitalization, inflows of between $3 billion and $4 billion would already be considered a success. Read how this could happen here: Ripple meets Wall Street: How billions could flow into XRP Spot ETFs
- However, SEC approval is still pending. The U.S. Securities and Exchange Commission has repeatedly postponed a decision, most recently until the end of October.
- According to the prediction market Polymarket, the probability of approval is currently 87 percent. This bodes well for the twelve applicants, including Canary Capital, Coinshares, Grayscale, and others.
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Sources
- X-Post by Adriano Feria
- Ripple ETF approval on Polymarket
