The expert predicted that the approval of the first-ever futures ETF on XRP would pave the way for a spot ETF. He believes it could potentially channel $100 billion into XRP.
This forecast emerged after the U.S. Securities and Exchange Commission (SEC) approved the ProShares futures ETF on XRP.
Approved futures ETF on XRP: will the next be a spot ETF?
According to the official document, ProShares will launch three futures-based ETFs: Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF. They will start trading on April 30. This development comes after the launch of Teucrium's 2x Long Daily XRP ETF in early April.
Although it is not a spot ETF, the approval has sparked optimism among XRP investors. Industry expert Armando Pantoja predicts that this move could lead to significant capital inflow into the altcoin.
"A spot ETF on XRP could be next, unlocking real demand and driving up prices. $100 billion+ could soon flow into XRP," he wrote.
Pantoja emphasized that the approval is a significant turning point for cryptocurrencies, as they now attract considerable attention from Wall Street and institutional investors. This move gives XRP a regulated and accessible pathway for major financial players to interact with the asset.
This development expands the base of XRP investors. Furthermore, it confirms its legitimacy in the mainstream, positioning it in what he called the 'elite league' of financial assets.
The analyst also drew parallels between XRP and the trajectories of Bitcoin (BTC) and Ethereum (ETH). He noted that futures ETFs were initially approved for both cryptocurrencies, followed by spot ETFs.
For example, the spot ETF on Bitcoin was approved in 2024, three years after ProShares launched the first futures ETF on Bitcoin in 2021. Now XRP seems to be on the same path.
Pantoja predicted that the approval of a spot ETF on XRP could have a significant impact on the market. As institutional investors gain greater access to the asset, it is likely to create significant buying pressure. Additionally, increasing demand and limited supply could set the stage for dramatic price growth for XRP.
"Futures ETF = first domino. Spot ETF = turning point. The long-term outlook for XRP has become significantly stronger," noted Pantoja.
However, another analyst tempered expectations. He pointed out that while the approval of a futures ETF is undoubtedly significant, it is not the turning point many may hope for.
"This is not a magic bullet that will trigger mass adoption or significant price changes. The real catalyst will come when a spot ETF on XRP is approved. Real tokens. Real demand. Real impact on the market," wrote John Squire.
Unlike a spot ETF, which buys and holds the actual token, creating real demand in the market, a futures ETF allows investors to speculate on the price without purchasing the underlying asset.
This distinction means that while a futures ETF may boost recognition in traditional finance, it does not directly impact the supply of XRP or create immediate buying pressure.
The analyst emphasized that the product also has significant downsides. One of the key issues is that it may lead to greater price volatility.
Moreover, futures ETFs often come with hidden costs, such as rollovers (the process of renewing contracts after they expire), slippage (the difference between expected price and actual trade price), and management fees, which can add inefficiencies and reduce overall investor returns.
It is worth noting that several applications for a spot ETF on XRP are currently awaiting SEC approval. The regulator faces critical deadlines for the Grayscale XRP Trust and 21Shares Core XRP Trust ETF, decisions on which are to be made in October.
While the U.S. makes decisions, other countries have already taken the initiative. BeInCrypto reported that Hashdex launched the first XRP ETF in Brazil last week. Importantly, confidence in a similar development in the U.S. remains high.
On Polymarket, a prediction platform, the probability of XRP ETF approval in 2025 stands at 76%. Meanwhile, market enthusiasm for XRP is also reflected in its price. The token's value has increased by 9.4% over the past week. In fact, its recovery has lifted it to highs last seen in late March. At the time of writing, the trading price of XRP was $2.30, representing a daily gain of 7.3%.#BinanceSquare #Write2Earn #XRPETFs #Binance #crypto $XRP