The recent introduction of Bitcoin ETFs (exchange-traded funds) in the US has sparked optimism about the possibility of similar ETFs for various cryptocurrencies, including XRP.
Fox Business correspondent Eleanor Terett has highlighted a crucial prerequisite for developing XRP ETFs.
XRP Needs a Future-Based ETF
Terett asserted that for XRP to have a spot-based ETF, it first needs a futures-based ETF. Drawing a parallel with the approval of spot Bitcoin ETFs, she emphasized that regulatory approval was granted based on confidence in the CME BTC futures market’s ability to provide surveillance against fraud and market manipulation.
A comparable system would be essential for a spot XRP ETF approval.
“In order to have an XRP spot ETF, there will first need to be a futures ETF. Part of getting the BTC spot ETFs approved was the SEC concluding that the CME bitcoin futures market would suffice to provide surveillance for fraud and manipulation. If XRP gets a futures ETF then it’s a step in the right direction to one day getting a spot,” Terret explained.
Her remarks address speculation about an XRP ETF, fueled partly by Ripple’s job listing for a Senior Manager of Business Development. It mentioned responsibilities, including driving cryptocurrency-related ETF initiatives, further aiding the rumors.
Despite persistent advocacy from the crypto community for such an ETF, challenges loom due to Ripple’s ongoing legal battle with the SEC. Such regulatory uncertainty has impacted BlackRock’s interest in XRP.
Network Adoption on the Rise
Despite the uncertainties surrounding a potential spot XRP ETF, the digital asset continues to witness significant adoption.
Santiment, a blockchain analytics firm, reported a substantial surge in active wallets holding XRP. The number of addresses holding more than 0 XRP surpassed 5 million. Notably, the count has doubled since February 2021, marking a surge of over 104%, and tripled since May 2019.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
Despite these noteworthy developments, the price of XRP has not mirrored the positive trend observed in wallet activity throughout the year. According to pricing data from BeInCrypto, after reaching a peak of $0.63 on the first day of 2024, the XRP price underwent a significant 19% correction, sliding towards the $0.50 range.
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