XRP ETF Expected to be Postponed Until Legal Case is Resolved, Says Cryptocurrency Analyst

Crypto analyst WrathofKahneman, a well-known supporter of XRP, has expressed his doubts about the possibility of an XRP exchange-traded fund (ETF) until a significant development takes place. With the US Securities and Exchange Commission (SEC) set to make decisions on Bitcoin ETF applications in early 2024, the arrival of crypto ETFs is expected to bring increased institutional investment to the crypto market. However, WoK believes that this influx of institutional funds could also lead to heightened volatility as arbitrage opportunities arise between the ETF and the underlying crypto assets. The ongoing lawsuit against Ripple, which alleges that XRP sales were an unregistered securities offering, is another factor that hinders the approval of an XRP spot ETF. Until the legal case is resolved, it remains uncertain whether an XRP ETF will be approved or not. Bloomberg Analyst previously suggested that listing XRP futures on the Chicago Mercantile Exchange (CME) could pave the way for an XRP ETF, but until this happens, WoK’s assessment stands. The debate over crypto ETFs continues, with some experts believing they will bring stability to the market by offering regulated and secure investment options, while others argue they could increase volatility due to arbitrage opportunities and institutional inflows.