Odds of Spot XRP ETF Improve Amid Pent-Up Institutional Demand

• Yassin Mobarak, founder of Dizercapital, highlights the pent-up institutional demand for spot XRP ETF while challenging the U.S. SEC.
• Fox Business journalist Eleanor Terret also highlights the need for an XRP futures ETF as a crucial step toward potential spot ETF approval.

There’s been a lot of chatter around Ripple’s XRP spot ETF coming to the market, however, some big players like BlackRock have confirmed that they are currently not in the race. Despite this, some market analysts believe that a spot ETF for XRP could be a game-changer in the market.

Yassin Mobarak, the founder of Dizercapital, has ignited a significant discussion with his tweets exploring the possibility of an XRP Spot Exchange-Traded Fund (ETF) making its way to Wall Street. Against the backdrop of a changing landscape in the digital currency realm, this proposal suggests an audacious direction for institutional investors.

If I were a Wall Street institutional fund and saw that the first mover advantage for #BTC and #ETH Spot ETF approval is gone, I would want to start thinking boldly and seriously consider filing an application for an #XRP Spot ETF. Why?

1. There’s a significant pent-up demand…

— Yassin Mobarak 🪝 (@Dizer_YM) December 17, 2023

Mobarak highlights the notable pent-up demand among institutions for a regulated XRP position. This demand became apparent when a false claim about BlackRock filing for an XRP spot ETF led to a rapid spike in XRP’s price, jumping from $0.665 to over $0.73 in less than half an hour. This incident underscores the market’s readiness and enthusiasm for such an investment vehicle.

Institutions Should Take First-Movers Advantage

In contrast to Bitcoin and Ethereum, there has been no institution filing for an XRP spot ETF yet. This vacuum leaves room for potential market leaders, with the first mover enjoying a significant strategic advantage. The anticipation of which entity will take this pioneering step is generating excitement in investment circles.

Mobarak’s proposal notably involves challenging the U.S. Securities and Exchange Commission (SEC). The recent court ruling, affirming that XRP is not a security, sets an intriguing stage for this challenge. The founder of Dizercapital encourages well-capitalized funds to challenge the SEC by submitting an application for an XRP ETF, potentially leading to a landmark legal battle.

Ripple Needs An XRP Futures ETF

Some market analysts also believe that Ripple should adopt the path that Bitcoin took while getting its first spot ETF in the market.

Fox Business journalist Eleanor Terret delves into the intricate regulatory landscape surrounding the potential approval of an XRP spot Exchange-Traded Fund (ETF). Terret further highlights a crucial prerequisite in this process, emphasizing the need for the establishment of a futures ETF for XRP.

Terret draws parallels with the regulatory approach that paved the way for the approval of Bitcoin (BTC) spot ETFs. Notably, the U.S. Securities and Exchange Commission played a key role in approving BTC spot ETFs by concluding that the Chicago Mercantile Exchange (CME) bitcoin futures market could effectively provide surveillance mechanisms against fraud and manipulation.

Besides, Terret offers insights into the regulatory nuances, asserting that the approval of a futures ETF for XRP is a pivotal step in the direction of potentially obtaining approval for an XRP spot ETF in the future. This analysis contributes to the ongoing dialogue surrounding the regulatory framework for cryptocurrency investment products. At press time, XRP price is trading 1.53% up at $0.53 with a market cap of $28.8 billion.

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