XRP enthusiasts remain hopeful that an ETF indexed to this crypto will soon arrive. But sector experts are much more circumspect about the rapid realization of such a financial product.
A mobilized crypto community but little listened to
On social networks and community platforms, the fantasy of an ETF backed by XRP remains alive among crypto enthusiasts launched in 2012 by the company Ripple.
Some see it as a financial product likely to appeal to traditional investors and finally propel XRP into the big leagues, alongside Bitcoin or Ethereum. A strong symbolic hope for its aficionados.
However, despite their lobbying efforts, the financial authorities seem to be turning a deaf ear. The regulatory and competitive context of the crypto ETF market does not speak in favor of XRP.
The SEC vs Ripple dispute, a major obstacle
One of the main pitfalls approval of an ETF linked to XRP lies in the legal disputes between the SEC and Ripple concerning the very status of XRP.
The American stock market watchdog considers XRP to be an unregistered financial security, effectively assimilating it to a financial security. Ripple disputes this classification, arguing that XRP is a crypto like any other.
As long as this dispute is not resolved, it therefore seems impossible that the SEC will give the green light to an ETF based on an asset whose nature even divides regulators. The XRP case seems stuck for a while.
Priority given to Bitcoin and Ethereum
Above all, the SEC and its international counterparts are first focusing on approving ETFs focused on the two giants Bitcoin and Ethereum.
The challenge is to offer mainstream products backed by proven crypto, rather than more speculative and volatile altcoins like XRP. Regulators are moving cautiously.
Despite their obvious interest in the cause, XRP aficionados will probably need to continue to be patient before their ETF wish comes true. Nothing is impossible, but the road still seems long.
Although popular with XRP enthusiasts, a dedicated ETF still faces prohibitive regulatory and competitive obstacles in the immediate future. Between legal uncertainties and priority for Bitcoin, the file is slipping, despite intense lobbying. Will the constant pressure from its crypto community end up paying off?
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