The recent approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) has ignited discussions within the cryptocurrency community regarding the possibility of ETF approval for other digital assets.
XRP, one of the most popular cryptocurrencies in the market, has emerged as a strong contender in this conversation, with speculation swirling about the potential launch of XRP ETFs in the U.S.
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However, the XRP community itself harbors contrasting viewpoints on this potential development. A recent X poll from a prominent community member revealed a significant split, with 66% of respondents expressing belief in the arrival of an XRP ETF by 2025, while the remaining 34% held a dissenting opinion.
Will ETFs Benefit XRP?
Proponents of an XRP ETF highlight the potential for increased institutional investment. They argue that an ETF would provide a regulated and accessible entry point for institutional investors, leading to a surge in XRP adoption and a positive impact on its market dynamics. This broader institutional participation could bolster XRP’s legitimacy and stability among its peers.
On the other hand, some members of the XRP community, including well-known XRP advocate Bill Morgan, voice skepticism regarding the necessity of an ETF for XRP’s future success. This viewpoint emphasizes the core utility of XRP as a medium of exchange.
They believe that XRP’s true value lies in its ability to facilitate seamless cross-border payments and that widespread adoption for its intended purpose should be the primary driver of its value. An over-reliance on institutional investment through an ETF could potentially overshadow XRP’s core functionality.
Morgan has also shared his belief that the SEC might not approve XRP ETFs, and if Ripple and the XRP community focus on making XRP the global reserve currency it is meant to be, it could outperform any benefits of ETFs. An ETF structure could introduce unnecessary complexities and potentially hinder XRP’s ability to fulfill its intended role within the global financial system.
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A well-respected crypto figure has also shared his belief that ETFs would have minimal impact on XRP’s price. He sees the ETF race as unnecessary for XRP, describing it as a distraction and invitation for institutional corruption.
Many attribute Bitcoin’s surge to a new all-time high partly to the ETF approval in January, and the next few months will show the benefits of these investment vehicles on Ethereum.
Massive success for Ethereum might change the minds of some skeptics in the XRP community. However, if Ethereum does not meet expectations, the crypto world might need to take a step back and reconsider the place of ETFs in the crypto world.
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