Yesterday, a laundry list of American asset managers adjusted their requests for XRP stock market funds. According to analysts, this is a sign that approval is getting closer. That would put Ripple’s coin on the same stage as Bitcoin (BTC) and Ethereum (ETH).
‘Good, but expected’
All parties in the race to launch XRP Spot Exchange-Traded Funds (ETFs) have applied for adjusted S-1 yesterday, in which the fund is explained in detail, submitted to the Securities and Exchange Commission (SEC).
These are the following companies: Grayscale, Bitwise, Canary Capital, Coinshares, Franklin Templeton, 21Shares and Wisdomtree.
What is a spot XRP ETF?
A spot XRP ETF is an investment fund that buys XRP so that the stock price accurately follows the XRP rate. For investors this means that they can invest in XRP through their regular broker, without having to buy or store the coin themselves. For large institutional parties, which are often not allowed to act in loose crypto, this offers a regulated instrument to step in.
The new documents change the structure of the proposed funds. Where previously there were only cash creations and redempties, the adjustments now also offer the possibility to use XRP itself in creating or redeeming ETF shares.
Bloomberg analyst James Seyffart emphasized on X that the adjustments almost certainly result from feedback from the SEC. He called it “a good sign, but largely expected”. Nate Geraci, president of Novadius Wealth, pointed out that it is striking that so many parties have updated their applications at the same time: “Very good sign in my opinion.”
In addition to an S-1, you also have a so-called 19B-4 application. This requires the stock market on which the fund will be traded for permission to be allowed to record the product. Only when both documents have been approved can an ETF actually enter the market.
A lot of confidence in the coming XRP ETFs
So steps in the right direction. But according to Bloomberg analysts James Seyffart and Eric Balchunas, that trust has been there for some time. In July they even screwed their chance of the first XRP ETFs to 95 percent. For Solana (SOL) and Litecoin (LTC), they are now almost certain the chance of a green light. For countless other cryptos, such as Cardano (ADA) and Dogecoin (Doge), the chance is 90 percent.
October will be the month of truth, because then numerous final deadlines will expire.
Source: https://newsbit.nl/vermogensreuzen-passen-xrp-etfs-aan-heel-goed-teken/
