The road to an XRP exchange-traded fund (ETF) has become more uncertain. SEC Commissioner Caroline Crenshaw has once again expressed strong opposition to crypto ETFs, sending shockwaves through the market.
Crenshaw's Opposition Raises Concerns
Crenshaw, currently the only Democrat on the Commission, has consistently voted against crypto ETF proposals. Of the recent 13 internal SEC votes on various crypto exchange-traded products, she was the lone dissenting voice in all cases. Her strong anti-crypto stance sends a 'clear message' that she remains firmly against further ETF approvals, including those for XRP.
Market Sentiment Wavers but Hope Remains
Following the successful launch of the ProShares Ultra XRP ETF (UXRP) on NYSE Arca, optimism around a spot XRP ETF soared, with Polymarket odds rising to 86%. However, Crenshaw's opposition during the latest round of SEC votes caused those odds to sink to a low of 65%, before slightly recovering to 71%. Bloomberg ETF analyst Eric Balchunas believes altcoin ETFs, including one for XRP, could still move forward.
Regulatory Future Remains Uncertain
While the SEC’s recent approval of in-kind creation/redemption for Bitcoin and Ethereum ETFs brought them closer to commodity-based ETPs, Crenshaw’s stance reveals a sharp divide within the Commission. Her consistent dissent could pose a significant obstacle for altcoin ETFs. For now, the path to an XRP ETF remains open but filled with uncertainty.
The odds of XRP ETF approval, influenced by Commissioner Crenshaw's position, have become less optimistic. All eyes are on how her influence will shape the SEC's next moves.
