28 February, 2024



Anticipating the Launch of XRP and Ethereum Spot ETFs in 2024

2 months ago

13 Jan, 2024

According to recent news, U.S. listed bitcoin exchange-traded funds (ETFs) saw a significant volume of $4.6 billion on debut after approval by the U.S. securities regulator. The debut of eleven spot bitcoin ETFs, including offerings from BlackRock, Grayscale, and ARK, has sparked a competitive race for market share, marking a pivotal moment for the cryptocurrency industry’s broader acceptance as a mainstream investment.

SEC vs Ripple

The U.S. Securities and Exchange Commission (SEC) has escalated its investigation into cryptocurrency company Ripple. According to a filing on January 11, the SEC is seeking a court order to compel Ripple to disclose financial statements for 2022 and 2023, along with contracts related to the institutional sales of XRP, its native cryptocurrency. The SEC is particularly interested in contracts postdating its initial complaint against Ripple, as these were deemed unregistered securities transactions by Judge Analisa Torres. 

Additionally, the SEC has urged Ripple to provide a formal written reply, specifically in the form of an interrogatory, detailing the profits generated from institutional sales following the filing of the SEC’s complaint. The purpose is to customize penalties for any potential infringements, suggesting the likelihood of injunctions and civil penalties being imposed on Ripple. In response, Ripple asserted that future XRP sales should be immune to injunctions, arguing that they fall under an exemption from registration and securities laws.

Ethereum ETF Approval Potential

As per Bloomberg analyst Eric Balchunas, the approval path seems clear for Ethereum Exchange-Traded Funds (ETFs) in 2024. Balchunas suggested a 70% likelihood of spot Ether ETF approval by May, the crucial month for the SEC’s final decisions on multiple applications. In a previous statement, Balchunas expressed doubt about a scenario where Bitcoin ETFs get approved while Ethereum ETFs do not, emphasizing the close connection between Ethereum and Bitcoin spot prices.

BlackRock CEO Larry Fink expressed optimism about the potential approval of a spot Ethereum ETF in the U.S., emphasizing its value following the company’s spot Bitcoin ETF (IBIT) success. With IBIT reaching $1.05 billion in trading volume on its debut, Fink sees these developments as stepping stones toward broader tokenization in the financial markets.

Following the announcement of a Bitcoin ETF, tokens based on Ethereum continue to dominate, showcasing impressive gains of up to 52%. Topping the CoinMarketCap charts on January 11 is Ethereum Name Service (ENS), a decentralized naming system on the Ethereum blockchain. ENS streamlines human-readable Ethereum addresses into machine-readable alphanumeric codes commonly recognized by wallets such as Metamask. The latest data reveals ENS at $24.17, reflecting a substantial 55.1% surge in the past 24 hours, aligning with the positive trend in the overall Ethereum market.

XRP ETF Approval Potential

In a Bloomberg interview, Steve McClurg, Valkyrie Funds’ CIO, anticipated potential approval for Ethereum or XRP exchange-traded funds (ETFs) after the launch of Bitcoin spot ETFs. While Valkyrie’s Bitcoin ETF will likely receive SEC approval, McClurg remains cautious about introducing Ethereum or XRP ETFs, adopting a prudent wait-and-see stance for future market dynamics.

Furthermore, the upcoming introduction of an exchange-traded fund (ETF) dedicated to Ripple (XRP) is stirring enthusiasm within the cryptocurrency market. As talks surrounding a potential XRP ETF intensify, the crypto community engages in speculation regarding its potential influence on XRP’s value. Although McClurg refrains from confirming Valkyrie’s participation, his positive perspective sparks conjecture about the likelihood of a substantial price upswing, potentially reaching $100. At press time, XRP is valued at $0.5741 with a 24-hour trading volume of $1,268,108,148.10

Ethereum Price Rise

In November, there was a notable upswing in Ethereum’s (ETH) value, reportedly linked to a filing made in Delaware. BlackRock Advisors submitted an application to the SEC for an iShares Ethereum Trust. Initially, speculation was that this filing was associated with the well-known investment firm BlackRock. This event sparked considerable excitement in both the Ethereum and broader cryptocurrency markets, resulting in an immediate uptick in the price of ETH.

Ethereum (ETH) has achieved a breakthrough, exceeding the $2,650 threshold for the first instance since May 2022. This significant surge occurred even as Bitcoin (BTC) faced a decline concurrently. Investors are now pondering the endurance of Ethereum’s current market capitalization of $307,142,563,853, particularly in light of the approved spot Bitcoin exchange-traded fund (ETF) and its potential impact.

As of the latest update, Ethereum’s price is $2,551.05, with a 24-hour trading volume of $24,755,182,925. Ethereum has dropped 1.85% in the last 24 hours at this price. Concurrently, this is a 14.29% growth in the past week and a 17.34% in the last month.

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