XRP is facing significant challenges on its path to achieving exchange-traded fund (ETF) status in the United States.
Despite the anticipated rise of crypto ETFs in 2024, XRP enthusiast WrathofKahneman (WoK) cautions that the ongoing legal battle with the Securities and Exchange Commission (SEC) poses a major obstacle.
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WrathofKahneman, a diehard XRP supporter, has expressed these concerns on X. He predicts that the introduction of crypto ETFs, including the highly anticipated Bitcoin spot ETF, will bring a wave of volatility in 2024.
As institutional money flows into the market, accompanied by increased liquidity, a delicate balance will need to be struck between ETFs and their underlying assets through arbitrage.
However, XRP faces a unique challenge. Unlike many other major cryptocurrencies, XRP’s fate is intertwined with its ongoing legal dispute with the SEC. WoK emphasizes that until this legal cloud dissipates, the possibility of an XRP ETF remains speculative at best.
Complicating matters further is the absence of a dedicated platform for XRP derivatives, such as futures contracts. A recent analysis by a Bloomberg expert emphasized the importance of listing XRP futures on a reputable exchange like the Chicago Mercantile Exchange (CME) as a crucial step towards securing an ETF.
While Bitcoin and other prominent cryptocurrencies prepare to enter the ETF arena, XRP must first resolve its legal tango with the SEC. However, this does not necessarily spell doom for XRP enthusiasts.
A recent court ruling granting Ripple access to internal SEC documents could be a turning point, potentially paving the way for a favorable resolution.
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In the meantime, XRP can find solace in its strong network and growing real-world applications. Ripple, the company behind XRP, boasts a global network of financial institutions and payment providers utilizing its technology for faster and more cost-effective cross-border transactions.
With increasing adoption and the possibility of legal victory, XRP may ultimately find its way to ETF approval.
Nevertheless, investors are advised to approach the situation with caution. The road to an XRP ETF has legal hurdles and market uncertainties. However, for those who possess patience and believe in XRP’s long-term potential, the eventual arrival of an ETF could mark a pivotal moment, signifying its official recognition within the mainstream financial landscape.
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