Ripple News: More XRP ETFs Expected as Firms Gear Up for Potential Crypto-Friendly Trump Presidency
The crypto world is buzzing with anticipation as several firms, including Bitwise, have filed for XRP-based spot ETFs. This surge in interest for XRP spot exchange-traded funds (ETFs) has captured attention, especially after some expected Solana to be the next big focus for ETFs, following a recent but withdrawn Solana ETF filing by VanEck.
Politics and Crypto Regulation
Nate Geraci, president of The ETF Store, spoke on the Thinking Crypto podcast, suggesting that these XRP ETF filings could be a strategic play ahead of the U.S. 2024 presidential election. Geraci pointed out that a potential return of former President Donald Trump, who has previously hinted at pro-crypto policies, might lead to a more favorable environment for crypto assets like XRP. A more crypto-friendly administration could boost the chances of XRP and other digital assets receiving regulatory approval for ETFs.
Challenges Facing XRP Spot ETFs
Despite the optimism, significant challenges remain for XRP ETFs. Unlike Bitcoin and Ethereum, which have futures contracts traded on the Chicago Mercantile Exchange (CME), XRP lacks a similar infrastructure. This makes it harder for regulators like the U.S. Securities and Exchange Commission (SEC) to monitor XRP markets and ensure market integrity.
The SEC has typically required surveillance-sharing agreements with regulated exchanges to minimize risks of market manipulation. However, as Geraci noted, most exchanges trading XRP are unregulated, which could make it difficult to meet the SEC’s requirements.
Ripple Lawsuit’s Role in XRP’s Classification
The ongoing Ripple v. SEC lawsuit is another important factor. The SEC has previously suggested that cryptocurrencies like XRP, once widely traded, may no longer be considered securities. If XRP is ultimately classified more like Bitcoin—as a commodity rather than a security—it could ease some regulatory hurdles for XRP-based ETFs. However, Geraci remains cautious, emphasizing that without a clear regulatory framework or surveillance-sharing mechanisms, quick approval for these ETFs is unlikely.
Conclusion
As firms like Bitwise continue to push for XRP spot ETFs, political shifts and ongoing legal battles will play crucial roles in determining their success. While the upcoming election and the Ripple lawsuit might pave the way for more XRP ETF approvals, regulatory challenges remain steep.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. The views expressed are those of the author and not necessarily those of CryptoInsider. Readers are encouraged to conduct their own research before making any financial decisions.
