XRP ETF Is Trending On X, Here’s Why
08 Januar 2024 - 10:45AM
NEWSBTC
As anticipation builds around the potential approval of the first
spot Bitcoin ETFs in the US by the Securities and Exchange
Commission, the keyword “XRP ETF” is currently trending on X
(formerly Twitter). Numerous XRP community members have posted
supposed proof that an ETF in the US is on its way and could soon
become a reality. However, a closer examination reveals a more
nuanced reality. Why is $XRP ETF trending? 👀 — XRPcryptowolf
(@XRPcryptowolf) January 7, 2024 XRP ETF Is Trending Good Morning
Crypto recently stated, “JUST IN: Fidelity Unveils XRP ETP !?! With
Grayscale & Fidelity offering XRP products, 2024 could be the
breakout year for XRP as it inches closer to all-time highs.”
Similarly, XRP CAPTAIN announced, “BREAKING: Spot XRP ETF is for
real,” while CryptoGeek claimed, “BREAKING: XRP ETF CITED TO BE
RELEASED IN A ‘MATTER OF WEEKS’ FOLLOWING BITCOIN ETF APPROVAL BY
THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION.” BREAKING 🚨🚨
SPOT #XRP ETF Is For Real 💥💥🚀🚀🚀 pic.twitter.com/Up2sA9jbDK — XRP
CAPTAIN (@UniverseTwenty) January 7, 2024 The root of these claims
lies in an XRP ETP from 21Shares (formerly Amun), which is
available on Fidelity Investments’ platform. This development has
generated significant excitement within the XRP community. However,
the narrative around a US-launched ETF is misleading. Related
Reading: New Report Predicts When The XRP Price Will Cross $1.56
The buzz partly stems from Grayscale’s recent decision to
reincorporate XRP into its Grayscale Digital Large Cap (GDLC) fund,
following Judge Analisa Torres’ July 2023 ruling that classified
XRP as a non-security. This ruling reversed Grayscale’s previous
removal of XRP in January 2020 amid legal controversies over its
security status. This move by Grayscale has fueled speculation
about an upcoming ETF from the firm. But contrary to circulating
claims, Fidelity has not launched an XRP ETP. Fidelity’s platform
only showcases the XRP ETP launched by Swiss financial institution
Amun AG in April 2019. This product, initially called AXRP and
later rebranded to 21Shares, is available on the SIX Swiss
Exchange. Moreover, it is not a US-registered ETP. Related Reading:
XRP Whale Makes Massive Transfer Amidst Price Volatility Meanwhile,
it is backed by physical XRP and managed by Coinbase Custody.
Remarkably, the product is 100% backed by physical XRP and records
$49,325 million in assets under management (AUM). Why A XRP ETF
Won’t Happen Anytime Soon Regarding the possibility of an XRP ETF
in the US, Bloomberg ETF expert James Seyffart offered a sobering
perspective a few months back in response to rumors about a fake
BlackRock XRP ETF which initiated a 15% pump that was quickly
erased. In an interview, he stated: “I don’t think that XRP is ever
going to get through the SEC’s doors, essentially not anytime soon,
even after that loss [Ripple vs. SEC]. He added, “First of all, CME
would have to list XRP futures before a futures ETF would launch,
and I can’t imagine them allowing them a spot XRP ETF anytime soon.
But again, like I said, three weeks ago I said I didn’t think
Ethereum futures ETFs would be coming anytime soon unless there’s a
huge change in the SEC, so theoretically it could be. But the SEC
has said in that Terra case and multiple other cases that they
believe Judge Torres got it wrong.” In summary, while the XRP
community’s excitement is palpable, the reality of an ETF in the US
remains distant, with regulatory hurdles and the SEC’s stance
posing significant challenges. At press time, XRP traded at
$0.55178. Featured image from Shutterstock, chart from
TradingView.com
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