The potential approval of an XRP spot Exchange Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC) has sparked a range of opinions in the industry. Eleanor Terrett, a journalist at Fox Business, has notably highlighted this development.
This development follows a significant ruling in July, where a U.S. district judge declared that XRP, a digital token, was not a security. Consequently, Ripple, the company behind XRP, faced no legal repercussions for selling it to retail investors on exchanges.
XRP’s resurgence, marked by its re-listing on prominent exchanges and integration into Grayscale’s Digital Large Cap Fund, fuels the debate about its future in investment funds. Often referred to as bulls, advocates view these events as affirmative signs. Their argument hinges on the belief that XRP benefits from the regulatory clarity provided by judicial decisions, unlike other digital assets, setting it apart in digital currencies.
However, not everyone shares this optimistic view. Critics, often referred to as bears, express skepticism. They point to the SEC Chairman Gary Gensler’s apparent reluctance towards most digital assets, excluding Bitcoin. This stance suggests that advocating for single-product ETFs like $XRP and possibly even $ETH (Ethereum) may face significant challenges.
They believe these hurdles could only be overcome with either Congressional intervention in crypto regulation or a change in administration. Additionally, the SEC’s potential approval of Bitcoin spot ETFs could further cement Bitcoin’s unique status, thereby reinforcing a distinction between Bitcoin and other cryptocurrencies in the eyes of the regulatory body.
Significantly, the ongoing discourse has been further enlivened by the filing of several applications for Ethereum spot ETFs. The industry keenly observes these developments, anticipating the SEC’s next moves.
According to Eleanor Terrett’s earlier tweet on the X platform, Steven McClurg, Chief Investment Officer at Valkyrie Funds, expressed that the SEC’s approval of a Bitcoin spot ETF might pave the way for similar products based on Ripple (XRP) and Ethereum.
This evolving situation highlights the digital asset community’s complex and often polarized views regarding regulatory acceptance and the future of cryptocurrency-related financial products. As the industry awaits the SEC’s decisions, these debates underscore the rapidly changing landscape of digital assets and their intersection with traditional financial regulatory frameworks.
