Does XRP Need a Futures Market for Spot XRP ETF Approval? SEC Commissioner explains

Bitwise has taken a major step by registering its first Spot XRP ETF with the US Securities and Exchange Commission (SEC). The Delaware-registered trust aims to give investors direct exposure to the value of XRP, deducting the coin's value from operating costs. This shows great activity for the crypto space, but it raises an important question: is the XRP futures market important?

Bitwise files for First Spot XRP ETF

As one of the largest crypto asset managers, Bitwise has been behind several crypto ETFs and is now leading the charge for the XRP Spot ETF. In the filing, Bitwise highlighted that the XRP holdings will be held by the Coinbase Custody Trust Company.

While this protection service is not covered by the FDIC, it is designed to provide personal insurance protection like other Bitwise ETFs.

The Spot XRP ETF application was filed on October 2, marking the registration of the XRP ETF Trust in Delaware. The move sparked excitement, but some debate, because the SEC previously required a futures market for Bitcoin and Ethereum spot ETF approvals.

Need XRP futures market?

In a recent interview on the Thinking Crypto podcast, SEC Commissioner Hester Pierce spoke about the importance of futures markets on ETF approvals. When asked if the XRP futures market is important, she explained that spot ETFs are not always needed.

It depends on the specific product, but the existence of the futures market helped to understand the underlying asset as seen in Bitcoin and Ethereum.

Peirce also noted that while Bitcoin and Ethereum benefit from futures markets, that doesn't mean every currency needs one. Each case must be evaluated on its own, which means XRP may continue without a futures market.

As Bitwise leads this effort, the future of the XRP market dynamics will be closely watched, especially with the possibility of competing with larger assets such as Bitcoin and Ethereum.