While Bitcoin exchange-traded fund (ETF) applications are still under review by the US Securities and Exchange Commission (SEC), executives from asset management firms are speculating about the potential launch of spot ETFs for other major cryptocurrencies, including XRP and Ethereum (ETH). However, the classification of XRP and Ethereum as securities presents regulatory challenges and potential hurdles for these index funds.
Unlike Bitcoin, which is classified as a commodity by regulators, XRP and Ethereum are considered securities. This difference in classification could necessitate a more complex approval process for spot ETFs tracking these cryptocurrencies. The expected impact of spot ETF approval on the XRP and Ethereum price would likely follow the pattern seen with Bitcoin. However, the SEC’s skepticism towards the broader cryptocurrency market could pose additional hurdles for XRP and Ethereum ETFs.
The outcome of the ongoing Ripple vs. SEC case could have significant implications for the cryptocurrency industry’s pursuit of these index funds for other cryptocurrencies. If Ripple, the blockchain payment company associated with XRP, wins the case and is not classified as a security, it could set a precedent for asset managers seeking to apply for an XRP ETF. This legal precedent could also lead to potential litigation against the SEC to support an Ethereum ETF application.
Despite discussions about the possibility of spot ETFs for XRP and Ethereum, there is still uncertainty surrounding the approval of Bitcoin ETFs. The SEC may reject or delay the pending applications, making it uncertain whether these other index funds will materialize. The current classification of XRP and Ethereum as securities by US regulators adds an additional layer of complexity to their respective ETF prospects.
Sources close to the process have indicated that the ultimate approval for Bitcoin ETFs may come on Wednesday. This coincides with the application deadline for Ark Invest and 21 Shares, raising the possibility of a potential trading launch between Thursday and Friday. Several applications are expected to receive the green light, pending updates from the SEC on the filings.
As anticipation builds around the potential approval of Bitcoin ETFs, asset managers are contemplating the prospect of spot ETFs for other major cryptocurrencies like XRP and Ethereum. However, the regulatory challenges and the classification of XRP and Ethereum as securities present significant hurdles for these index funds. The Ripple vs. SEC case outcome could have far-reaching implications, potentially setting a legal precedent for asset managers to pursue XRP and Ethereum ETFs.
XRP is currently trading at $0.5673, showing a lack of bullish momentum with a 1% decline in the past 24 hours. It has also experienced a continuous downtrend of 13% over the past 30 days.
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This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Analisa Torres |
| Companies | Ripple, 21 Shares, Ark Invest, US Securities and Exchange Commission, NewsBTC |
| Currencies | Ethereum, XRP, Bitcoin |
| Securities | None |
