Now that the Securities and Exchange Commission (SEC) has finally ended its longstanding resistance to spot Bitcoin Exchange Traded Funds (ETFs), it raises the prospect that it might accept other types of crypto funds too.
Several of the asset managers recently granted permission to launch Bitcoin ETFs have already submitted proposals for spot Ether funds. But why stop there? After Ethereum, XRP could emerge as the next crypto ETF frontier.
In a recent interview, Valkyrie CIO Steve McClurg suggested that asset managers are eager to branch out into other cryptocurrencies after the approval of Bitcoin ETFs.
Without digressing what VanEck planned to do next, he said: “I think we’re going to see a lot of filings come out for Ethereum. I even think we might see something for Ripple, given the recent progress.”
Echoing McClurg’s comments, Bloomberg analyst James Seyffart also believes that XRP is the next most likely ETF prospect after Bitcoin and Ether. However, he acknowledged that Ripple’s ongoing legal troubles will probably hold up progress.
Observing that Ethereum ETFs could be approved in the coming months, Seyffart suggested that the SEC would be unlikely to accept XRP funds while it is in the middle of a court battle with Ripple. “I don’t think that’s happening this year unless the court case is completely done,” he said.
What’s more, whereas spot Bitcoin and Ether ETFs were preceded by funds that invest in crypto futures, there is no equivalent precedent for XRP. Observing that the existence of Bitcoin and Ether futures ETFs strengthens the argument for letting funds hold the cryptocurrencies directly, Seyffart noted that “we don’t have any of that for Ripple.”