An expert has forecasted that the approval of the first XRP futures exchange-traded fund (ETF) could pave the way for a spot ETF, potentially channeling $100 billion into XRP. This prediction follows the U.S. Securities and Exchange Commission (SEC) approving ProShares' XRP futures ETF, set to launch on April 30.
XRP Futures ETF Approval: Pathway to a Spot ETF?
ProShares will introduce three futures-based ETFs:
- Ultra XRP ETF
- Short XRP ETF
- Ultra Short XRP ETF
This development aligns with the trajectory of Bitcoin and Ethereum, where futures ETFs preceded spot ETF approvals. Analysts suggest XRP could follow a similar path, bolstering institutional interest and market legitimacy.
Key Predictions and Market Impact
Armando Pantoja, a cryptocurrency expert, emphasized:
"A spot XRP ETF could unlock real demand, driving prices upward. Over $100 billion may flow into XRP, positioning it among elite financial assets."
Pantoja highlighted that futures ETFs serve as a critical first step, while spot ETFs could generate substantial buying pressure and reduce supply, potentially igniting a price surge.
Skepticism and Realistic Expectations
However, not all analysts share this optimism. John Squire noted:
"Futures ETFs don’t create direct demand for XRP. The real game-changer will be a spot ETF, which involves actual token purchases."
Futures ETFs also come with drawbacks:
- Higher volatility
- Hidden costs (rollover fees, slippage, management expenses)
- No direct impact on XRP’s circulating supply
Global Developments and Future Outlook
Several spot XRP ETF applications are pending SEC review, with decisions expected by October 2024. Meanwhile, Brazil has already launched its first XRP ETF through Hashdex.
👉 Explore XRP’s growth potential
Market Sentiment:
- Polymarket odds favor a 76% chance of XRP ETF approval by 2025.
- XRP’s price surged 9.4% last week, reaching $2.3 (a 7.3% daily increase).
FAQ
1. How does a futures ETF differ from a spot ETF?
A futures ETF speculates on price movements without holding the asset, while a spot ETF buys and stores the actual cryptocurrency, creating direct demand.
2. What are the risks of XRP futures ETFs?
Volatility, hidden fees, and no tangible impact on XRP’s supply.
3. When will the SEC decide on spot XRP ETFs?
Critical deadlines for Grayscale and 21Shares’ applications fall in October 2024.
4. Which country has already approved an XRP ETF?
Brazil launched the first XRP ETF via Hashdex.