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BitBoy predicts an imminent XRP ETF launch, citing the explosive performance of an XRP Trust by a billion-dollar asset manager as a positive sign.
ETFs have arguably been the biggest crypto narrative in 2024 besides memes. Fueled by the success of spot Bitcoin ETFs and their impact on the asset’s price, market speculators have set their eyes firmly on altcoins they expect to be next in line to receive the traditional investment wrapper. Among the potential contenders is XRP.
Recently, a prominent market commentator has offered speculators an additional reason to anticipate the launch of an XRP ETF.
“Good Sign XRP ETF Is Coming”
On Friday, December 13, Ben “BitBoy” Armstrong expressed confidence that an XRP ETF launch was imminent. The influencer shared this view, citing gains recorded by Grayscale’s XRP Trust, launched in September 2024.
Specifically, the trust’s share price has surged over 300% from an opening price of $10.85 to $47.48 at the time of writing. “Good sign an XRP ETF is coming,” Armstrong asserted, citing these gains.
Armstrong’s sentiment comes as the gains recorded by Grayscale’s product could bolster institutional investor confidence in the asset, adding to the factors driving the push for a launch of a spot XRP ETF.
Other factors include the SEC’s expected pro-crypto shift in the incoming Donald Trump Administration and Ripple’s partial win over the regulator in July 2023 in the long-standing case over XRP’s asset classification.
For context, the Jay Clayton-led SEC in December 2020 had labeled Ripple’s XRP sales as unregistered securities offerings. This stance was maintained after Gary Gensler took over the reins at the SEC in 2021, leading to a legal battle that has spanned four years.
In July 2023, U.S. District Judge Analisa Torres ruled that XRP as an asset and its secondary sales did not represent unregistered securities, offering it some legal clarity.
So, When Could XRP ETF Launch?
Typically, the SEC has 240 days to respond to an ETF application. With the most recent XRP ETF application coming in November 2024, XRP holders could be looking at an approval timeline that extends to July 2025 in the best-case scenario.
Still, analysts like Bloomberg’s James Seyffart have noted that altcoin ETF approvals could take a bit longer than some expected. Seyffart argues that these assets may need an established Commodity Futures Trading Commission (CFTC) regulated futures market first.
At least four asset managers have applied to launch spot XRP ETFs in recent months. These asset managers include Canary Capital, 21 Shares, Bitwise, and Wisdom Tree.