Ether ETFs pave the way for XRP ETFs, say experts

XRP, a famous leading cryptocurrency with a notable upswing, has surged to breach resistance levels and recorded a new high for the year of more than $0.745. This rally sent investor optimism soaring and sparked discussions about the currency’s fate, namely the talk about the launch of an exchange-traded fund (ETF) linked to XRP.

Recent market growth for XRP has been primarily fueled by the resolution of a significant litigation from the previous year; therefore, the XRP ecosystem will now have more room for innovation. Martin Hiesboeck, the Research Director at Uphold Exchange, is among the authorities who deem this legal clarification an essential progression for XRP. The author emphasizes certain ongoing developments, such as the establishment of an Ethereum-compatible sidechain and the incorporation of an Automated Market Maker into the XRP Ledger, as indications of the cryptocurrency’s promising future.

The process of initiating a U.S.-based XRP ETF, which is fraught with regulatory hurdles, offers promising prospects. The regulatory discussions are being approached with caution by the main financial institutions, including BlackRock. In fact, while executives of Ripple and Valkyrie, including their respective CEOs Brad Garlinghouse and Steve McClurg, are optimistic about the future approval of ETFs, they draw parallels to the evolution of the traditional stock market, in which diversification was the primary risk management strategy.

This XRP fervor only arises when analysts and investors revise their projections for alternative cryptocurrencies. Eric Balchunas of Bloomberg has consequently reduced the likelihood of an ETF entering the spot Ethereum market segment to 35%. This suggests that XRP ETFs would be permissible according to logic if the Ethereum market established a precedent.

A positive outlook exists for investment vehicles focused on XRP on a global scale. Currently, the Swedish Stock Exchange and Europe offer exchange-traded products (ETPs) such as the 21Shares Ripple XRP ETP, which monitors the performance of the cryptocurrency.

It is important to note, however, that despite the introduction of ETPs such as the 21Shares Ripple XRP ETP, it remains distinct from ETFs, and the court ruling does not indicate that XRP ETF has prevailed. With regard to their ramifications, these advancements will augment the level of investor exposure to XRP and facilitate the currency’s progressive integration into the framework of the financial world. It would indicate the market’s maturity and adoption of cryptocurrencies as long-term investments, thereby advancing the industry.

David Cox

David is a finance graduate and crypto enthusiast. He projects his expertise in subjects like crypto and Blockchain while writing for CryptoNewsZ. Being from Finance background, he efficiently writes Price Analysis. Apart from writing, he actively nurtures hobbies like sports and movies.

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