Ripple Riding the ETF Wave
XRP Exchange-Traded Fund (ETF) Updates from April 30: Here's the Lowdown
In the realm of financial innovation, Teucrium recently stole the spotlight as the pioneer introducing an exchange-traded fund (ETF) in the US market that tracks Ripple's native token. Dubbed the Teucrium 2x Long Daily XRP ETF (XXRP), this financial vehicle, listed on NYSE Arca, grants investors leveraged exposure to XRP's daily price changes.
Making a strong debut with approximately $5 million in trading volume, the XXRP ETF set the stage for a flurry ofapprovals by the US Securities and Exchange Commission (SEC) for additional XRP ETFs, all issued by ProShares. These three products – Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF – were initially scheduled for release on April 30. However, research analyst at Bloomberg Intelligence, James Seyffart, later debunked this news, hinting at a potential short- or medium-term launch instead.
According to the revised filings, these financial vehicles are slated for release on May 14, mirroring Teucrium's futures-based approach, giving investors exposure to XRP's price through derivatives. As these investment vehicles don't hold real tokens, the question remains: when will a spot XRP ETF emerge in the US?
The Waiting Game
A star-studded lineup of big names, including Grayscale, Franklin Templeton, 21Shares, WisdomTree, Bitwise, and others, have applied for approval to launch a spot XRP ETF. Such a product, if approved, would simplify investors' ability to gain exposure to Ripple's native token by offering a straightforward buying process through authorized brokerage accounts.
A recent change at the top of the SEC saw Paul Atkins assuming the position of Chairman, stirring hopes in the Ripple community about an imminent approval for a spot XRP ETF due to his pro-crypto stance. Yet, these expectations were tempered when the Commission postponed its decision on Franklin Templeton's ETF proposal to June 17. Fox Business's Eleanor Terrett noted that this deadline was "intermediate," suggesting another delay might be on the cards.
Despite this delay, the odds of approval for a spot XRP ETF remain high. Eric Balchunas, Senior ETF analyst at Bloomberg, estimates an 85% probability of such a product hitting the market sometime in 2025. Polymarket's forecasts are slightly more conservative, estimating the chance at 80%.
Special Offers:
- Binance: Join here to open an account and enjoy an exclusive welcome offer of $600 on Binance.
- Bybit: Sign up here to open a position of $500 in crypto, no strings attached.
Crypto ETF | Ripple (XRP) Price | Facebook | Twitter | LinkedIn | Telegram
- The arrival of a spot XRP ETF in the US market is highly anticipated, with big names such as Grayscale, Franklin Templeton, 21Shares, WisdomTree, and Bitwise among those who have applied for approval.
- Eric Balchunas, Senior ETF analyst at Bloomberg, predicts an 85% probability of a spot XRP ETF being introduced to the market by 2025, while Polymarket's forecasts are slightly more conservative, estimating the chance at 80%.
- The US Securities and Exchange Commission (SEC), under the leadership of Paul Atkins, has shown a pro-crypto stance, sparking hope among the Ripple community for an imminent approval of a spot XRP ETF.
- The Teucrium 2x Long Daily XRP ETF has already made its debut, offering leveraged exposure to XRP's daily price changes, but investors are eagerly awaiting a spot XRP ETF that would simplify buying Ripple's native token through authorized brokerage accounts.
- Alongside the progress in the finance world, advancements in technology have paved the way for trading crypto, bitcoin, and other digital assets, making it easier than ever before to diversify investment portfolios and capitalize on the potential growth of the crypto market.
