A glimmer of hope emerged for crypto enthusiasts with the recent approval of the first Bitcoin spot exchange-traded fund (ETF) in the United States. The crypto community has been eagerly waiting for this outcome since before the SEC let the deadline to appeal the Grayscale ruling expire.
However, the path for similar ETFs, especially for XRP, is not as clear. Prominent lawyer Bill Morgan recently warned that approval hinges on a delicate balance within the U.S. Securities and Exchange Commission (SEC), and the future looks particularly daunting for XRP.
Let’s just consider this divided 3-2 vote on the BTC spot ETF approval in terms of an applicant seeking approval of a spot #Ethereum ETF or XRP ETF
Gensler: Approved
Peirce: Approved
Uyeda: Approved
Crenshaw: Not Approved
Lizárraga: Not ApprovedYou need a vote from Gary…
— bill morgan (@Belisarius2020) January 11, 2024
Read Also: Top Crypto Executive Says XRP ETF Coming Next
The most important player that could dash the hope of an XRP ETF is SEC Chair Gary Gensler, whose stance against cryptocurrencies is well-documented and does not inspire confidence in crypto investors.
Notably, the recent Bitcoin ETF approvals came through with a divided 3-2 vote, with Gensler surprisingly joining the “yes” camp. The problem facing Ethereum and XRP ETFs is that Gensler’s vote could be the tiebreaker that determines their fate.
Mr. Huber (@Leerzeit) on X, stated that Gensler was reluctant with his yes vote, and only agreed because the SEC lost the Grayscale lawsuit, which demanded that the regulator review its stance on spot Bitcoin ETFs, as it failed to adequately justify the ETF rejections. Despite this court ruling, Bitcoin ETFs only got three out of five votes, barely getting approval.
What’s Next for Ethereum and XRP ETFs
Unlike Bitcoin, neither Ethereum nor XRP currently has an official spot ETF application before the SEC. Yet, many in the crypto community believe an XRP ETF is inevitable. However, Morgan’s tweet serves as a sobering reminder of the uphill battle facing the crypto community. The attorney wrote, “You need a vote from Gary Gensler to approve a spot Ethereum or XRP ETF. Let that sink in.”
According to Morgan, “Any confidence in a quick approval of an Ethereum or XRP spot ETF is misplaced with the current bunch of commissioners and Gensler in place.”
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Read Also: XRP ETF Could Send Shockwaves Through Crypto Industry. Here’s why
Gensler’s anti-crypto reputation, clearly shown in the SEC’s strategy of suing all the big players in the crypto industry, especially in Ripple, could prevent the highly anticipated XRP ETF.
However, a market analyst recently explained why XRP does not need ETFs, arguing that ETFs could hurt XRP through instructional corruption.
Despite this, until the SEC establishes a more transparent and predictable framework for ETF approvals, particularly for Ethereum and XRP, the hope for broader crypto adoption may remain just that – a hope.
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