With growing anticipation surrounding its launch, the potential XRP ETF approval could significantly impact both the digital asset market and investor access to XRP. Investors have speculated that XRP may be the next token to get SEC clearance for an ETF after various Bitcoin and Ethereum spot ETFs were approved earlier this year. Recently, many asset managers applied to establish XRP-linked ETFs, fueling this idea.
Bitwise was the first asset manager to file an S-1 for a spot XRP ETF with the SEC on October 2. Canary Capital applied for an XRP ETF a week later, on October 9, 2024. 21Shares and WisdomTree also announced U.S. XRP ETFs. On November 1, 21Shares filed their S-1, whereas WisdomTree filed on December 2. Grayscale Investments and Bitwise also attempt to establish Crypto ETF baskets, including XRP.
XRP ETF Launch
iTrustCapital has provided a detailed analysis of the product in light of the rising momentum flowing from the prospective launch of exchange-traded funds (ETFs) based on XRP. We presented this assessment in anticipation of the impending launch of such ETFs. An exchange-traded fund (ETF) for XRP is a financial instrument that does not only monitor the price of XRP but also holds the underlying asset on behalf of investors, as stated in one explanation. According to this description, the exchange-traded fund (ETF) is a financial tool.
iTrustCapital ETF Insights
According to Trust Capital, exchange-traded funds (ETFs) that have the potential to be used for XRP provide investors with two big benefits: they make it easier for buyers to access the cryptocurrency, and they provide them with extra monitoring tools. Both of these benefits are substantial. One of the most significant benefits for investors is that the accessibility feature enables them to access the investment product via their brokerage accounts. This is one of the most crucial advantages. Remember that the product operates inside the framework of recognized financial markets.
This provides investors with an increased level of security. This is an essential point to keep in mind. This particular aspect of the product deserves consideration.ITrustCapital has identified four significant drawbacks of the exchange-traded fund (ETF) system. Despite the highlighted benefits, these drawbacks still exist. Several drawbacks of this method include limited trading hours, non-direct ownership of XRP, inadvertent monitoring mistakes, and too high fees.
XRP ETF Approval
Potential approval of a spot-based XRP ETF might affect XRP markets, demand, and supply. This might raise institutional demand or market attention. Fund managers must possess much of the coin to endorse XRP ETFs. Fund managers may purchase more XRP tokens as more investors join the market, generating purchasing pressure. This rising demand might boost XRP prices.XRP’s market awareness may rise with an ETF approval. After legalization, many will identify XRP as a key asset established financial institutions use. Thus, it may attract new investors to XRP.
XRP ETF Timeline
At this point, there is no clear date set for when the XRP ETF applications might be approved. There are rumours that the investment vehicle could go live next year when the SEC has a new leadership LeCryptorypto supporter, Paul Atkins. Donald Trump, who will be president in January, has already chosen Atkins to be his SEC chair. So, people in the Crypto community hope his administration will benefit the industry and lead to better rules and more Crypto ETFs, some of which will be tied to XRP.
Related: XRP Market Value Growth Surging Ahead of Bitcoin and Ethereum
Summary
iTrustCapital, a well-known Crypto IRA site, just recently added XRP ETFs. This has led to rumours that XRP could be the third cryptocurrency after Bitcoin and Ethereum to be accepted for an SEC-linked ETF. Many big asset managers, like Bitwise, Canary Capital, 21Shares, and WisdomTree, have already filed for XRP ETFs. This shows that more and more people are interested in this digital asset. iTrustCapital’s research shows that XRP ETFs have both pros and cons. The pros include easier access and better tracking tools.
The cons include limited trade hours and high fees. If the SEC approves a spot-based XRP ETF, institutional demand and the price of XRP could increase. This would make financial institutions more aware of the market. There isn’t a clear date for approval yet, but reports say that XRP ETFs could start trading next year, with Paul Atkins as chairman of the SEC. President-elect Trump picked Atkins. The Crypto community should gain from this change in leadership because it should lead to better rules and a better setting for Crypto ETFs.
