Kaiko, a market research company, said that XRP exchange-traded funds are more likely to be approved than spot funds recently suggested tracking altcoins.
XRP's front-runner position comes because of the underlying token's high liquidity, said Kaiko. Spot volume for XRP Kaiko reported that trading on American exchanges reached its peak recently, since the delistings of 2020 were prompted by a lawsuit. XRP has the fourth highest market cap of all cryptocurrencies.
Kaiko added that the SEC's prior approval of a fund giving investors exposure to the coin also worked in XRP's favor. Teucrium Investment Advisors is a U.S. asset management company. launched Earlier this month, a leveraged XRP exchange traded fund (ETF) was launched with a 2-fold return.
"It's hard to argue against allowing a spot product when there's already an active ETF like this, which is highly levered and more risky than a vanilla spot ETF," Kaiko's Adam Morgan McCarthy told Decrypt.
Bitwise Grayscale 21Shares CoinShares Canary Capital and Canary Capital are all attempting to list spot-XRP funds. The applications and others for ETFs based on Solana, Litecoin, Cardano, and Dogecoin, among other tokens, reflect issuers' growing efforts to address demand for crypto investment products. Kaiko said that a Solana fund would be the second most likely to get regulatory approval after an XRP-based ETF.
Ripple’s founders created the virtual coin XRP. At the end 2020, the SEC filed a lawsuit against Ripple alleging its team had sold securities unregistered in the form XRP.
The coin’s price nosedived—especially during the brutal bear market. Ripple’s lawsuit against the SEC partially settled, but the coin made a recovery. In 2023, a judge ruled It was determined that the programmatic sale of XRP by cryptocurrency exchanges on to retail investors does not qualify for securities.
Ripple—and the crypto industry as a whole—interpreted the decision as a win, despite the judge also ruling that $728 million worth of tokens for institutional sales constituted unregistered securities sales.
Fintech companies last month You can agree to this by clicking here. The SEC will have to pay an amount of $50,000,000 to close the investigation.
CoinGecko reports that XRP is currently trading at $2.12. It’s up 15% from the previous week. But it still lags behind its 2018 record-breaking high per coin of $3.40. XRP was almost at that same all-time high in January.
Last year, the SEC endorsed Bitcoin ETFs. They have since been extremely popular, with net inflows of more than $39.9 billion, as reported by U.K. asset managers Farside Investors. A few months later, the regulator approved Ethereum funds, which haven't been met with the same amount of investor enthusiasm.
James Rubin, Editor
