- The article explores the growing anticipation for an XRP spot ETF, drawing parallels with the trajectory of Bitcoin ETFs.
- It highlights the pivotal role of an XRP futures ETF, emphasizing insights from market watchers, Gemini Exchange’s strategic moves, and regulatory advancements as key factors shaping the unfolding narrative.
The recent green light given to spot Bitcoin exchange-traded funds (ETFs) has ignited speculation in the cryptocurrency community, with all eyes now on the prospects of Ethereum and XRP following suit. However, insiders argue that before we see an XRP spot ETF, the crucial stepping stone is an XRP futures investment product, mirroring the trajectory seen in the Bitcoin market.
Spot XRP ETF hinges on futures investment counterpart
Eleanor Terrett of Fox Business points out that the SEC’s approval of Bitcoin spot ETFs was preceded by a consensus that the CME bitcoin futures market could provide the necessary surveillance against fraud and manipulation. Terrett emphasizes, “If XRP gets a futures ETF, then it’s a step in the right direction to one day getting a spot.
In order to have an $XRP spot ETF, there will first need to be a futures ETF.
— Eleanor Terrett (@EleanorTerrett) January 27, 2024
Part of getting the $BTC spot ETFs approved was the @SECGov concluding that the CME bitcoin futures market would suffice to provide surveillance for fraud and manipulation.
If $XRP gets a futures ETF… https://t.co/MPFVSherXK
While the SEC versus Ripple lawsuit casts a shadow of uncertainty on XRP’s regulatory status, some industry players are making strategic moves. BlackRock’s recent decision to steer clear of an XRP ETF suggests lingering concerns about regulatory ambiguity.
Gemini Exchange’s Role in the XRP ETF Narrative
Gemini Exchange has entered the spotlight, recently relisting XRP after being appointed custodian for VanEck’s spot Bitcoin ETF. This strategic move not only reinstates XRP on the trading platform but also opens up discussions about a potential Spot XRP ETF in Europe. Gemini’s push for regulatory compliance, coupled with the SEC versus Ripple ruling providing partial clarity, has fueled discussions about the exchange’s commitment to expanding its product offerings.
SCOOP: @BlackRock has no plans for a spot $XRP ETF, according to people with direct knowledge of the matter story developing
— Charles Gasparino (@CGasparino) January 18, 2024
The appointment as custodian for VanEck’s spot BTC ETF adds a layer of security and trust, positioning Gemini as a key player in the evolving landscape. The exchange’s pursuit of regulatory approval as a Digital Asset Service Provider (DASP) in France further cements its commitment to facilitating the growth of cryptocurrency markets.
JUST IN: Gemini exchange (@Gemini) made 4 cryptic $XRP related posts in a row
— BlockNews.com (@blocknewsdotcom) January 22, 2024
Speculation around an EU-based Spot XRP ETF is rising pic.twitter.com/PnLwc5eTVe
Anticipating Regulatory Clarity
As the Ripple versus SEC lawsuit progresses, the cryptocurrency community remains on the edge of their seats, awaiting regulatory clarity that could potentially pave the way for an XRP spot ETF. In the interim, the focus on an XRP futures investment product becomes paramount, echoing the journey that Bitcoin ETFs undertook before gaining regulatory approval. With Gemini Exchange taking bold steps and regulatory advancements in Europe, the stage is set for a potential leap towards the long-awaited XRP spot ETF.
