The American crypto IRA platform iTrustCapital recently discussed the upcoming launch of XRP ETFs, following the approval of Bitcoin and Ethereum spot ETFs earlier this year. Speculation has been building that XRP could be the next token to receive approval from the SEC for an ETF. Several asset managers have submitted applications to launch XRP-linked ETFs, including Bitwise, Canary Capital, 21Shares, and WisdomTree. Grayscale Investments and Bitwise are also looking to launch ETF baskets tied to multiple cryptocurrencies, including XRP.
iTrustCapital provided essential information on the incoming XRP ETFs, defining them as investment vehicles that track the price of XRP and hold the underlying asset on behalf of investors. The platform highlighted the accessibility and oversight benefits of potential XRP ETFs, allowing investors to access the product through brokerage accounts and providing better protection under traditional financial markets. However, there are also drawbacks, such as limited trading hours, non-direct ownership of XRP, tracking errors, and high fees.
The potential approval of spot-based XRP ETFs could impact XRP markets by influencing the token’s demand and supply. This could lead to increased institutional demand and broader market attention for XRP. Fund managers of XRP ETFs would need to hold substantial amounts of the token to back the investment vehicle, potentially creating buying pressure and driving a price surge for XRP. Additionally, the approval of an XRP ETF could increase awareness of the token as a major asset adopted by traditional financial institutions, attracting new interest and investments.
While there is no official timeline for the approval of XRP ETF applications, speculation suggests that the investment vehicle could go live next year under new SEC leadership chaired by pro-crypto advocate Paul Atkins. U.S. President-elect Donald Trump has nominated Atkins as his SEC Chair, raising optimism in the crypto community for favorable regulations and more crypto ETFs, including those tied to XRP. With the growing interest in XRP ETFs and potential regulatory support, the future looks bright for XRP as an investment option in the crypto market.
