One expert predicted that the approval of the first ETF for XRP futures would pave the way for a spot ETF. He believes this could lead to $100 billion being funneled into XRP.
This expectation comes after the U.S. Securities and Exchange Commission (SEC) approved the ProShares XRP futures ETF.
The XRP futures ETF has been approved: is the spot ETF next?
According to the white paper, ProShares will launch three futures-based ETFs: Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF. They are scheduled to begin trading on April 30. This development follows the launch of Teucrium's 2x Long Daily XRP ETF in early April.
Although it is not an ETF, the approval has sparked optimism among XRP investors. Industry expert Armando Pantoga expects this move could lead to a significant influx of capital into the altcoin.
The XRP ETF could be next, opening the door to real demand and significantly raising prices. More than $100 billion could soon flow into XRP, he wrote.
Pantoga confirmed that the approval represents a significant turning point for cryptocurrencies, as it now attracts significant interest from Wall Street and institutional investors. Thanks to this move, XRP has gained a structured and easy-access way for major financial players to deal with the assets.
This development expands the investor base for XRP. Furthermore, it affirms its legitimacy in the mainstream, placing it within what he called the "elite league" of financial assets.
The analyst also drew parallels between XRP and the paths of Bitcoin (BTC) and Ethereum (ETH). He noted that futures ETFs were approved first for both cryptocurrencies, followed by spot ETFs.
For example, the Bitcoin Spot ETF was approved in 2024, three years after ProShares launched the first Bitcoin Futures ETF in 2021. Now, it seems that XRP is on the same path.
Pantoga predicted that the approval of the XRP ETF could have a significant impact on the market. With institutional investors gaining greater access to the assets, it is likely to spark significant buying pressure.
Moreover, increased demand and adjusted supply could pave the way for a significant increase in the price of XRP.
Pantoga commented: "The futures ETF is the first domino. The spot ETF is the turning point. XRP's long-term position has become much stronger."
However, another analyst adjusted his forecasts. He confirmed that while the approval of the futures ETF is certainly important, it is not the event that many might expect.
"The magic solution is not what will drive mass adoption or massive price movements. The real catalyst will come when the XRP ETF is adopted. Real tokens. Real demand. Real impact on the market," this was posted by John Square.
Unlike spot ETFs, which buy the actual token and hold it, creating real demand in the market, futures ETFs only allow investors to speculate on the price without purchasing the underlying asset.
This distinction means that while the futures ETF may increase recognition within traditional finance, it does not directly affect the supply of XRP or create immediate buying pressure.
The analyst pointed out that the product also comes with notable drawbacks. The main issue is that it could lead to increased price volatility.
Moreover, futures ETFs often carry hidden costs, such as rollovers (the process of renewing contracts upon expiration), slippage (the difference between the expected price and the actual trading price), and management fees, which can add inefficiency and reduce overall returns for investors.
It is worth noting that many XRP spot ETF applications are currently awaiting SEC approval. The regulatory body faces critical deadlines for Grayscale XRP Trust and 21Shares Core XRP Trust ETFs, with decisions expected in October.
While the United States makes decisions, other countries are taking the lead. BeInCrypto reported that Hashdex launched the first XRP ETF in Brazil last week. It is important to note that confidence in a similar development in the United States remains high.
On the prediction platform Polymarket, the odds of approving an XRP ETF in 2025 are 76%. Meanwhile, the market's enthusiasm for XRP is also reflected in its price.
The cryptocurrency's price rose by 9.4% over the past week. In fact, the economic recovery has pushed it to unprecedented levels since the end of March. At the time of writing this report, XRP was trading at $2.3, representing a daily gain of 7.3%.
