TL;DR
- @XRPcryptowolf, with 319,500 followers, doubts an XRP ETF in 2024, comparing it to the widespread approval of the Bitcoin ETF.
- @Christo4489 sees an XRP ETF as a “unicorn,” focusing on regulatory classification following Ripple’s lawsuit with the SEC.
- The XRP community is divided between doubts and alternative suggestions, such as the possibility of ETFs on the XRPL to gain exposure to XRP-related assets.
In the cryptocurrency world, the possibility of launching an XRP-based Exchange-Traded Fund (ETF) has generated divergent opinions and speculation within the Ripple XRP community.
Two influential community members, @XRPcryptowolf and @Christo4489, have shared insights that shed light on the viability and challenges of an XRP ETF.
@XRPcryptowolf, with a strong base of 319,500 followers on X, has expressed skepticism about the approval of an XRP ETF this year.
An $XRP spot ETF won’t be launched this year cause it would be way too soon for that. It took Bitcoin many years to accomplish that. Something else will be the catalyst for the XRP bull run 💯
— XRPcryptowolf (@XRPcryptowolf) January 29, 2024
He notes that the approval of a Bitcoin ETF took several years, along with ongoing efforts by Grayscale.
Furthermore, it highlights that not even Ripple Labs, the official distributor of XRP in the market, has filed an application for an XRP ETF.
This leads to the conclusion that a release this year would be premature.
Despite these doubts, @XRPcryptowolf suggests that the XRP community is hoping for another catalyst for a possible rise in XRP value.
On the other hand, @Christo4489 presents a different perspective by describing an XRP ETF as a “unicorn.”
An XRP ETF is a Unicorn. Basically said, it's a currency, not a security! Only a security can be in an ETF. However, there could be ETFs on the XRPL… Otherwise, why did Ripple go through a lawsuit with SEC. Simples. Don't hold your breath for an XRP ETF, can't be a thing!
— Chris Eastham (@Christo4489) January 29, 2024
He argues that Ripple XRP is a currency, not a security, and notes that only securities can be part of an ETF.
Mention of Ripple’s SEC Lawsuit Highlights Importance of XRP’s Regulatory Classification
Chris Eastham urges the community not to wait too hopeful for the creation of an XRP ETF, stating that it might not be possible in the conventional sense.
The key distinction here is whether XRP is considered a currency or a security, which has significant implications for its inclusion in financial products such as ETFs.
In addition, the possibility of ETFs in the XRPL, the XRP Ledger, is being raised as an alternative that could offer exposure to XRP-related assets without directly involving the currency.
The XRP community is divided in its expectations and opinions regarding the creation of an XRP ETF.
While some express well-founded doubts based on past experience with other cryptoassets, others warn about regulatory complexities and suggest alternatives in XRPL.
Uncertainty remains around the possibility of seeing an XRP ETF in the near future.
