An expert believes that the recent approval of the first XRP futures exchange-traded fund (ETF) may open the door for a spot ETF, potentially attracting around $100 billion into XRP.
Following the approval of ProShares' XRP futures ETF by the US Securities and Exchange Commission (SEC), the expert foresees positive outcomes. This development marks the launch of three futures-based ETFs by ProShares, which will become available for trading starting April 30th.
Though this is not a spot ETF, the approval has generated optimism among XRP investors and industry expert Armando Pantoja anticipates a significant inflow of capital into the altcoin market. He suggests that the approval indicates a pivotal moment for cryptocurrency, drawing increased interest from Wall Street and institutional investors, thus providing a regulated platform for them to engage with XRP.
Pantoja draws a connection between the futures ETF approval for XRP and the historical paths of Bitcoin and Ethereum. He predicts that the approval of a spot XRP ETF could have a substantial impact by driving institutional demand and potentially leading to a surge in XRP's price.
On the other hand, a different analyst tones down the expectations, highlighting that while the futures ETF approval is noteworthy, the real game-changer would be the approval of a spot XRP ETF. This would lead to real demand in the market and directly impact XRP's supply and price levels.
While a futures ETF enhances recognition in traditional finance, it does not influence the supply of XRP directly, with the potential for increased price volatility and additional costs associated. Several spot XRP ETF applications are awaiting SEC approval, with decisions expected in the following months.
Despite the pending approvals in the US, other countries have taken the lead in launching XRP ETFs. The market is optimistic about the possibility of a similar move in the US, as shown by high-confidence predictions on platforms like Polymarket. XRP's price performance exhibits a positive trend, reflecting market enthusiasm and recovery, with notable daily gains at the time of writing.