This is why the SEC won’t approve the Ripple XRP ETF.
The recent introduction of Bitcoin ETFs (exchange-traded funds) in the US has sparked optimism that similar ETFs will exist for various cryptocurrencies, including XRP.
Fox Business Correspondent Eleanor Terrett highlighted a critical prerequisite for developing XRP ETFs.
XRP is looking for a futures based ETF
Terrett said that in order for XRP to have a spot-based ETF, it first needs a futures-based ETF. Drawing parallels with the spot Bitcoin ETF, she emphasized that regulatory approval was granted based on CME's confidence in BTC futures market manipulation and monitoring of market manipulation.
Equitable system is essential for spot XRP ETF approval.
“In order to have an XRP spot ETF, there must first be a futures ETF. Part of the acceptance of the BTC spot ETF was the SEC's conclusion that the CME bitcoin futures market was adequate to provide monitoring for manipulation and fraud. If XRP gets a futures ETF, it's a step in the right direction to one day find a place,” Teret explained.
Her comments were prompted in part by Ripple's senior manager of business development to speculate about the XRP ETF. He cites responsibilities in driving cryptocurrency-related ETF initiatives and helping further spread the word.
Despite steady support for such an ETF from the crypto community, challenges loom over Ripple due to its ongoing legal battle with the SEC. Such regulatory uncertainty has affected demand for BlackRock's XRP.
Network adoption is increasing.
Despite the skepticism surrounding the XRP ETF, the digital asset continues to gain significant adoption.
Sentiment, a blockchain analytics firm, has reported a significant increase in active wallets holding XRP. The number of addresses holding more than 0 XRP has exceeded 5 million. Specifically, the number has doubled since February 2021, an increase of more than 104%, and has tripled since May 2019.
Read more: Ripple (XRP) Price Prediction 2024/2025/2030
Despite these significant developments, the price of XRP did not reflect the positive trend seen in wallet activity throughout the year. According to price data from BeinCrypto, after peaking at $0.63 on the first day of 2024, the price of XRP underwent a massive 19% correction, sliding into the $0.50 range.
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