Nate Geraci, the head of The ETF Store, recently mentioned that the market may not be ready to embrace an XRP spot exchange-traded fund (ETF).
During a conversation with Tony Edward on the Thinking Crypto podcast, Geraci shared his thoughts on the potential emergence of a Solana or XRP ETF by 2025. He was asked to evaluate the possibility of these crypto investment products hitting the market.
Geraci explained that before an XRP ETF could be launched, certain key steps would need to be taken. These include going through a similar approval process as Bitcoin and Ethereum, where their futures are listed on a platform regulated by the Commodity Futures Trading Commission (CFTC).
He pointed out that Solana or XRP futures would need to be traded on the Chicago Mercantile Exchange (CME) for this to happen. Additionally, Geraci highlighted that the U.S. SEC would require a track record and trading history of an XRP ETF before considering a spot ETF for XRP.
In essence, an XRP futures ETF would need to precede a spot ETF for XRP to be seen in the market. Therefore, Geraci suggested that it could take several years for these developments to materialize.
Other ETF experts, such as Bloomberg’s James Seyffart, have echoed similar sentiments. Seyffart believes that the earliest timeline for new crypto ETFs after Ethereum is 2026.
On another note, the co-founder of The ETF Institute proposed a different approach for an XRP ETF that he believes would be faster and simpler. He suggested creating a clear regulatory framework for crypto by the U.S. Congress.
According to Geraci, this framework should define what constitutes a security or commodity and outline oversight responsibilities. He mentioned that with such regulations in place, other crypto ETFs could be introduced sooner. However, he expressed doubts about the likelihood of Congress implementing these regulations, especially during an election year.
In conclusion, Geraci stated, “That’s a long way of saying I don’t expect to see Solana or XRP ETFs come to market anytime soon.” Meanwhile, Ripple’s CEO, Brad Garlinghouse, anticipates that an XRP ETF could potentially launch as early as next year. While he is confident about the inevitability of an XRP ETF, he remains open to the uncertainty of the exact timeline.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The opinions expressed are those of the author and do not necessarily reflect The Crypto Basic’s views. Readers are advised to conduct thorough research before making any investment decisions. The Crypto Basic shall not be held responsible for any financial losses.