Spot Bitcoin ETF Approved, Bull-Bear Debate Centers On Potential Spot XRP ETF

The US Securities and Exchange Commission (SEC) has finally approved multiple Bitcoin ETF spots. As the long-awaited approval comes to fruition, the funds are expected to start trading on Thursday, January 11.

Following the approval, crypto enthusiasts argue that spot BTC ETF can be used in single-product ETF for other assets. Among the highlighted funds is a potential spot, XRP ETF.

The Possibility Of A Spot XRP ETF

Recently, Fox Business journalist Eleanor Terrett initiated a bull-bear argument for potential XRP ETF on X. She based her argument on conversations with notable industry commentators.

Based on my conversations with industry around this today, there's definitely differing views on whether or not the @SECGov would approve a single-product $XRP spot ETF.

Bulls argue that XRP is the only digital asset that has received any kind of "regulatory clarity" from the... https://t.co/DcQTuNaKiZ

- Eleanor Terrett (@EleanorTerrett) January 9, 2024

Eleanor explained that the bull case support for potential XRP ETF hinges on the regulatory clarity the token gained in the US last year.Recall that in her ruling on July 13, 2023, Judge Analisa Torres declared XRP to be a non-security.

The judge ruled that XRP sales on exchanges to retail investors don't represent an investment offering. The court's decision inspired several crypto exchanges to relist XRP on their platform. Moreover, this move authenticates the overall outlook of the token as a legitimate asset.

While bulls believe this clarity bodes well for XRP, the bears believe Gary Gensler's position as the SEC Chair would discredit other crypto assets in the ETF race. This means it's close to impossible for other assets to get approval of equivalent ETFs.

Additionally, the bears think it may take a Congressional intervention to establish other crypto ETFs under the present SEC leadership. The concept of a potential spot XRP ETF emerged last year after a fake XRP ETF filing connected to BlackRock surfaced.

Several XRP proponents started hatching and considering the idea of listing such a product in the market.

However, the supposed filing was later discovered to be untrue, but the notion of XRP ETF still flows within the crypto community. In a recent Bloomberg interview, Valkyrie's CIO, Steve McClurg, suggested the possibility of achieving a spot in XRP and Ethereum ETFs in the future. His comments triggered more hope for the product among people.

Spot Ethereum ETF Could Open The Door for XRP

While the idea of getting the SEC's approval for other non-Bitcoin ETFs could be valid, some are ready to test the waters. Some companies that bagged spot Bitcoin ETF approval have also applied for spot Ethereum ETFs with the regulator.

While speaking in an interview with Bloomberg, Valkyrie CIO stated that more filings for Ethereum-based ETFs could emerge. Once ETH scaled the hurdle, he believes that other assets like XRP will follow closely. McClurg highlighted Grayscale's inclusion of XRP in its traded trusts as an indicator of such development.

The CIO stated:

You notice that Grayscale just added XRP to one of their trusts that is publicly traded. So it wouldn't surprise me if we saw Ripple (XRP) or Ethereum spot ETFs out there.

Notably, a spot ETH ETF would be the testing window for other single-asset ETF products. Further, it would reflect the growth level of the crypto ecosystem into an era of regulatory trust and maturity.

The post Spot Bitcoin ETF Approved, Bull-Bear Debate Centers On Potential Spot XRP ETF appeared first on The Tech Report.