As we look toward 2025, crypto traders anticipate a more open trading environment with hopes for the launch of a Spot XRP ETF. Multiple companies have filed applications with the SEC, indicating a growing interest in XRP-focused investment products.
Companies Striving to Launch XRP ETF
Bitwise Asset Management, Canary Capital, 21Shares, and WisdomTree are among the firms seeking approval to launch a Spot XRP ETF. Initial filings were made by Bitwise on October 2, and 21Shares on November 1. The latest application was submitted by WisdomTree on December 2, 2024, proposing the 'WisdomTree XRP Fund' for listing on the Cboe BZX Exchange.
Changes in Regulatory Environment
Historically, the SEC has been hesitant to approve crypto ETFs due to concerns over market manipulation and lack of oversight. However, the approval of BlackRock’s Spot Bitcoin ETF earlier this year indicates a significant shift in the SEC's stance. Adding to the optimism is the impending departure of SEC Chair Gary Gensler, known for his strict approach to cryptocurrencies, which might open doors for more favorable regulatory decisions.
Potential Market Impact
Market analysts note that a Spot XRP ETF could significantly impact XRP adoption by making it more accessible to institutional investors, potentially increasing its liquidity and market value. If the current filings follow historical trends, decisions by the SEC on these applications could be expected as early as Q1 or Q2 of 2025.
The launch of a Spot XRP ETF could mark a pivotal point in the evolution of the cryptocurrency market, providing broader access to XRP investments and potentially influencing its market position.
