Can Ripple also expect billions of inflows if an ETF is approved?
The recent approval of spot Ethereum ETFs by the US Securities and Exchange Commission (SEC) has fueled debate within the crypto industry about the future of similar financial instruments for other digital assets. With the focus on XRP, one of the most popular cryptocurrencies, the industry is on edge about the possibility of an XRP ETF in the United States.
Division in the community
A recent poll by a well-known XRP community member on the social media platform 66% of respondents said they were confident that an XRP ETF would be approved by 2025, while 34% were still unsure.
Proponents: Institutional investment and market legitimacy
Proponents of an XRP ETF argue that its introduction could lead to a massive increase in institutional capital. They believe an ETF would provide a regulated and accessible entry point for institutional investors, which could in turn lead to a surge in XRP adoption. They suggest that this increased participation would strengthen XRP’s legitimacy and stability in the market.
Skeptics: Core functionality of XRP over institutional involvement
However, not all members of the XRP army share this optimistic outlook. Bill Morgan, a well-known proponent of XRP, expresses skepticism about the need for an ETF for the future success of XRP. He and like-minded community members argue that XRP’s true value lies in its ability to enable seamless cross-border payments.
The impact of ETFs
A respected figure in the crypto industry has also weighed in, suggesting that ETFs would have minimal impact on the price of XRP. He described the race for ETF approval as a distraction and an invitation to institutional corruption. This view is consistent with the idea that the essence of cryptocurrencies lies in their decentralized nature and functionality, rather than their appeal to institutional investors.
