#XRPETF Chapter 4 - What is the XRP ETF and why is it important?
What is an XRP ETF?
An XRP ETF (Exchange-Traded Fund) would allow investors to gain exposure to XRP without needing to directly own the cryptocurrency. This is achieved through a fund that tracks the price of XRP and is traded on traditional exchanges, facilitating access for institutional and retail investors.
In October 2024, Bitwise Asset Management submitted an application to the SEC to launch an XRP ETF. The SEC formally acknowledged this application in February 2025, initiating the review process.
This proposed ETF would offer investors a regulated way to invest in XRP, which could enhance the legitimacy and adoption of the cryptocurrency.
📊Potential market impact
JPMorgan analysts estimate that XRP ETFs could attract up to $8 billion in their first year of operation.
$XRP
This capital influx could have a significant effect on the price of XRP and the overall market perception of cryptocurrencies.
🔎🔎Regulatory considerations
The approval of an XRP ETF depends on the regulatory classification of the cryptocurrency. In 2023, a court ruling determined that secondary sales of XRP do not constitute securities offerings, which could favor the approval of the ETF. Crypto Briefing
What do you think?
Do you believe that the approval of an XRP ETF will boost its adoption and price? Would you like us to delve deeper into how cryptocurrency ETFs work in a future chapter?
