XRP Spot ETF Approval Odds Rise to 83%, Driven by Institutional Interest and Support from Major Firms

The possibility of an XRP Spot ETF becoming a reality is rising fast. According to Polymarket, the odds of approval have climbed to 83%, up from 73% earlier this month.

The possibility of an XRP Spot ETF becoming a reality is rapidly increasing. As seen on Polymarket, the odds of approval have surged to 83%, compared to 73% earlier this month.

With major financial players like Grayscale and Franklin Templeton now joining the race to create XRP ETFs and Ripple CEO Brad Garlinghouse highlighting their role in unlocking institutional capital, the crypto market is buzzing with anticipation.

Several firms, including Bitwise, CoinShares, Grayscale, and Franklin Templeton, have already filed applications for XRP ETFs with the SEC. However, the regulator has yet to approve any of these products. Experts say that the SEC is running a bit behind schedule with its ETF approvals and could make a decision by October.

Recently, the SEC approved several Bitcoin (BTC) ETFs from firms like BlackRock, Fidelity, ARK/21Shares, Valkyrie, and State Street.

Could XRP Be Next in Line After Bitcoin ETF Approvals?

Following the recent approval of several Bitcoin (BTC) ETFs, experts predict that the U.S. SEC could soon turn its attention to approving the first-ever XRP ETF.

Earlier this month, the SEC granted approval for Bitcoin ETFs from various major financial institutions, including BlackRock, Fidelity, ARK/21Shares, Valkyrie, and State Street.

This signals a significant shift in the SEC’s stance on cryptocurrencies and could pave the way for the approval of other digital asset ETFs, experts say.

Among the pending ETF applications, several firms have already filed to list XRP ETFs on the New York Stock Exchange (NYSE). These include Bitwise, CoinShares, Grayscale, and Franklin Templeton.

However, despite the anticipation, the SEC has yet to approve any of these products, and there is still no indication of when these applications will be reviewed by the regulator.

According to reports, the SEC is running a bit behind with its ETF approvals. But considering the recent activity, experts believe that the regulator could make a decision on the pending applications by October of this year.

If the SEC does not approve any of the pending applications by October, then these companies will likely have to reapply for listing.

What Is the Importance of ETFs for XRP and Broader Adoption?

In a recent episode of Ripple’s “Crypto in One Minute” podcast, CEO Brad Garlinghouse discussed the crucial role of ETFs in facilitating broader institutional adoption of cryptocurrencies.

Garlinghouse explained that for traditional investors to participate in the crypto market, they would need to deal with private keys, exchanges, or other complexities, which can be a barrier to entry.

However, ETFs offer a safer and more regulated entry point for these investors, who prefer investing in familiar asset classes like stocks, bonds, and ETFs through traditional brokerage firms.

“The way that Bitcoin is going to get to $500,000 is not people buying Bitcoin on an exchange. It’s going to be when grandma and grandpa are investing in a Bitcoin ETF in their brokerage account,” Garlinghouse stated.

Pointing to the rapid growth of Bitcoin ETFs in early 2024, Garlinghouse noted that they became one of the fastest-growing ETF classes.

He added that major players in this space include BlackRock, Fidelity, ARK/21Shares, and others.

Discussing the possibility of an XRP ETF, Garlinghouse highlighted that it could unlock new avenues for broader adoption of the cryptocurrency, positioning it for wider usage.

“We're going to see even more derivative products, like XRP futures and leveraged ETFs, come to market in the second half of 2024.”