More XRP ETFs to Expect as Companies Prepare for a Potentially Crypto-Friendly Trump Presidency
The surge in interest in XRP spot ETFs has stirred up the crypto community, as has Bitwise's offering for XRP-based ETFs. The move surprised some, with many expecting Solana to be the next major focus after companies like VanEyck applied for the Solana ETF but pulled out.
The Political Influence on Crypto Regulations
On the Thinking Crypto podcast, ETF Store President Nate Gerasi suggested that these documents could be strategic moves ahead of the upcoming US election. Gerasi theorized that the companies are gearing up for more crypto-friendly management. Former President Donald Trump has previously hinted at a positive stance on cryptocurrency, and some believe his return to office could increase the chances of getting regulatory approval for XRP and other crypto ETFs.
Future Challenges for XRP Spot ETFs
Despite the renewed interest around potential political changes, Gerasi also spoke of regulatory hurdles for XRP ETFs. Like Bitcoin and Ethereum, which have futures contracts traded on the CME, XRP does not have the same infrastructure, which makes it difficult for regulators to monitor the market and ensure security.
The SEC typically requires a monitoring sharing agreement with a regulated exchange to reduce the risks of market manipulation. However, as Geraci points out, most of the crypto exchanges where XRP is traded are currently unregulated, creating another complication for SEC approval.
The impact of the Ripple lawsuit on the XRP classification
Another factor influencing XRP's regulatory path is the ongoing Ripple v. SEC case. The SEC has proposed that once crypto tokens such as XRP are widely traded, they may no longer qualify as securities. If XRP is viewed in the same way as Bitcoin—as a non-security commodity—this could alleviate regulatory concerns. However, without a regulatory framework and proven track-sharing mechanism, Geraci doubts XRP ETFs will gain quick approval.
