XRP ETFs: Diverging Perspectives in the Crypto Community
As anticipation builds around the approval of US spot exchange-traded funds (ETFs) for XRP, industry analysts are expressing mixed opinions about their potential impact on institutional interest. Analyst Adriano Feria warns that XRP ETFs might highlight weaker demand from institutions compared to the dominant products in the market, particularly those associated with major investment firms like BlackRock and Fidelity.
In a post on Crypto Twitter, Feria predicted that the introduction of Ripple ETFs could signal “the beginning of the end for XRP” due to his doubts regarding significant institutional engagement. His comments reflect a broader concern in the crypto community about the cryptocurrency’s viability and appeal.
Responses from the community have varied widely. Some members label XRP as a fraudulent venture, claiming it lacks meaningful development and contractual backing. Conversely, there are staunch defenders of XRP, with some claiming they are investing more in the asset, emphasising that the potential introduction of an ETF could simplify purchasing for new investors. Many assert that shorting XRP may not be wise at this point.
Despite the divided opinions, traders have noted a positive trend, particularly with XRP futures ETFs reaching a historic milestone. Open interest in these futures exceeded US$1 billion (AU$1.52 billion) on the Chicago Mercantile Exchange recently, setting a record, as reported last week.
Not all commentary on XRP’s future is negative; some experts propose that its proposed ETF could yield significant inflows, with EasyA co-founder Dom Kwok suggesting that XRP’s robust liquidity—positioning it as one of the most traded digital assets—could lead to better performance compared to earlier crypto ETFs. Kwok noted that only a small fraction (7%) of the global population currently engages in cryptocurrency trading, highlighting substantial growth potential.
As of the latest figures, XRP has seen a modest increase of 2% within 24 hours, trading at US$2.79 (AU$4.26). With a market capitalisation of US$166 billion (AU$253 billion), it remains the third-largest cryptocurrency, trailing only Bitcoin and Ethereum but ahead of stablecoins like Tether.
In summary, while analyst Adriano Feria expresses skepticism about institutional interest in XRP ETFs, suggesting it may mark a downward trend for the cryptocurrency, many in the community maintain a more optimistic outlook. With its strong liquidity and the potential for increased retail interest, XRP continues to capture attention, leaving many analysts and traders watching closely as developments unfold.
