Recent moves by major investment firms like ProShares towards creating ETFs based on XRP signal a growing institutional interest in this cryptocurrency.
Institutional Interest and XRP Liquidity
According to research by Kaiko, XRP currently leads all altcoins with ten active ETF applications. Its higher number of applications compared to competitors like Solana, Litecoin, and Dogecoin strengthens XRP’s position. Additionally, XRP's high liquidity is noteworthy, indicating substantial trading volumes close to market prices. The SEC considers liquidity depth an essential criterion while evaluating ETF approvals. High liquidity helps reduce volatility, allowing investors to trade in a more stable price environment.
ProShares' Move, Ripple Case, and Expert Insights
Crypto analyst John Squire finds it significant that ProShares submitted its ETF application just as expectations for a possible settlement between Ripple and the SEC are rising. This suggests that XRP is no longer sidelined but is stepping into the spotlight and gaining attention.
Silence from BlackRock Raises Eyebrows
ProShares’ move is not an isolated initiative. Significant asset management firms like Bitwise, CoinShares, and 21 Shares have also lined up to offer XRP-based ETF products. However, a notable absence stands out: BlackRock. The silence from this giant player in the ETF space is viewed by many experts as a potential turning point. A possible XRP ETF move by BlackRock could reshape the competitive landscape entirely.
The situation surrounding XRP and ETF applications demonstrates a growing interest from institutional investors. Successful approval of these applications, especially from major firms, could significantly enhance XRP's reputation in the traditional finance world.
