The end of the legal dispute between Ripple and the SEC creates strong momentum for the development of XRP-focused ETFs.
The XRP ETF fund promises to excel due to advantages in the Profit Mechanism, market position, and an active user community, opening up prospects for attracting larger investment flows than the Ethereum ETF.
MAIN CONTENT
The conclusion of the Ripple-SEC lawsuit enhances the approval prospects for the XRP ETF to nearly 95%.
The XRP ETF has advantages over the Ethereum ETF due to its yield structure and leading position in cross-border payments.
The XRP community and investment flows are expected to strongly drive the growth of new ETF funds.
What strategic advantages does the XRP ETF have over the Ethereum ETF?
Steven McClurg, CEO of Canary Capital, stated that the three main factors giving an advantage to the XRP ETF are yield, market position, and community interaction.
Unlike Ethereum with a staking yield of 2–3%, cryptocurrency investors can directly benefit from choosing to hold ETH rather than an ETF. XRP does not offer staking, so the XRP ETF does not lose competitive advantage in yield for investors.
Furthermore, XRP is the leading blockchain for cross-border payments and facilitates institutional transactions similar to Bitcoin in its role as a store of value. The diverse XRP community strength, including both individual and institutional investors, also provides significant potential for increasing ETF capital flows.
The approval rate for the XRP ETF has surged thanks to legal clarity.
The SEC's cessation of its appeal in the lawsuit with Ripple has raised the likelihood of the XRP ETF launching above 88% according to Polymarket market prediction data, while Bloomberg assesses it at nearly 95%.
Futures-based XRP ETFs have attracted over $1 billion in institutional capital, showing significant interest from professional investors. Google Trends data also reflects a global interest increase of 733% in just one month, particularly in Canada, the United States, South Korea, Singapore, and Israel.
The legal clarity following the Ripple lawsuit opens up opportunities not only for the XRP ETF but also promotes more transparent regulations in the cryptocurrency sector.
Hester Peirce, SEC Commissioner, 2024
Launch plans and pricing methodology for the XRP ETF.
Canary Capital has filed for XRP ETF licensing and expects the product to debut before the end of 2025, possibly even sooner.
Unlike managers using the CME index, Canary Capital plans to use an alternative pricing index to cover a broader cryptocurrency market, suitable for NFT and DeFi investors.
The impact of the lawsuit's conclusion on the development of XRP and ETFs.
The SEC has officially withdrawn its appeal, confirming the lawsuit's conclusion, paving the way for Ripple to develop without litigation barriers.
Attorney Bill Morgan asserts that this conclusion reassures the XRP community legally, facilitating the approval of the XRP ETF and stimulating an increase in institutional capital flows.
Frequently Asked Questions
1. Why might the XRP ETF be more attractive than the Ethereum ETF?
The XRP ETF does not face pressure from low staking yields like Ethereum does, and it holds a leading position in cross-border payments, attracting both institutional and individual investors simultaneously.
2. What is the current approval rate for the XRP ETF?
Experts estimate the likelihood of XRP ETF approval in 2025 to be between 88% and nearly 95%, based on Polymarket and Bloomberg data.
3. How much capital has the XRP ETF attracted?
The XRP futures-based ETF is attracting over $1 billion, indicating strong interest from institutional investors.
4. What does the conclusion of the Ripple and SEC lawsuit mean?
The lawsuit's definitive conclusion allows Ripple to avoid long-term legal risks, facilitating the development of the XRP ETF and more transparent cryptocurrency regulations.
5. When might the XRP ETF launch in the market?
Canary Capital expects the XRP ETF to launch before the end of 2025, possibly even sooner, with a unique pricing methodology compared to current products.
Source: https://tintucbitcoin.com/ceo-canary-capital-xrp-etf-vuot-troi-ethereum/
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