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Yassin Mobarak, the founder of Dizercapital, outlined compelling reasons why Wall Street institutions might consider filing for an XRP Spot ETF in the United States.
In a recent tweet, Mobarak suggested Wall Street institutions should boldly explore the untapped potential of an exchange-traded fund directly investing in XRP. He expressed that such a move should be a critical consideration for them with the first mover advantage for Bitcoin (BTC) and Ethereum (ETH) Spot ETFs that have already been claimed.
Mobarak provided a strategic perspective on the XRP market, emphasizing why Wall Street funds should consider an XRP spot ETF.
If I were a Wall Street institutional fund and saw that the first mover advantage for #BTC and #ETH Spot ETF approval is gone, I would want to start thinking boldly and seriously consider filing an application for an #XRP Spot ETF. Why?
1. There's a significant pent-up demand…
— Yassin Mobarak 🪝 (@Dizer_YM) December 17, 2023
Pent-Up Institutional Demand for XRP Position
Mobarak noted a significant pent-up demand among institutions to secure regulated positions in XRP. He highlighted the market’s rapid response to a fake online post about BlackRock filing for an XRP spot ETF. He believes the sharp price impact on XRP strongly indicates a demand for XRP ETF.
As reported, XRP remarkably soared from $0.665 to over $0.73 in less than 30 minutes amid the bogus XRP ETF filing.
Open Field for XRP Spot ETFs
Secondly, Mobarak highlighted that, unlike BTC and ETH, no institution has filed for an XRP spot ETF application yet. He noted the situation presents an open field for potential market leaders. Additionally, he remarked that being the first to file could offer strategic advantages for the Wall Street fund.
Challenging the SEC
Furthermore, Mobarak suggested that filing for an XRP spot ETF could be a bold move challenging the U.S. Securities and Exchange Commission (SEC) after the XRP court ruling.
“It would be very interesting to watch how the SEC would respond,” the Dizercapital founder remarked.
Specifically, he urged institutional funds with substantial capitalization to consider challenging the SEC by submitting the application for an XRP ETF, daring the regulator to deny it.
According to him, the legal development following such a denial would be intense given the court ruling that XRP is not a security.
Moreover, Mobarak argued that the risk-to-reward ratio for an XRP spot ETF is compelling. In particular, he contended that the prospect of the SEC avoiding additional legal battles might favor an XRP ETF approval.
Ultimately, Mobarak envisions a scenario where an approved XRP spot ETF triggers both an avalanche and a snowball effect in the market.