Markets
President of The ETF Store Says Market Is Not Ready for XRP ETF
Nate Geraci, president of The ETF Store, recently suggested that the market is not ready for an XRP spot exchange-traded fund (ETF).
Geraci shared his views during a interview with Tony Edward from the Thinking Crypto podcast. Edward highlighted projections suggesting that a Solana or XRP ETF could emerge by 2025 and asked Geraci to assess the likelihood of these crypto investment products hitting the market.
XRP Futures ETF to precede
Geraci explained that the introduction of an XRP ETF would require key developments. First, it would have to go through an approval process similar to that of Bitcoin and Ethereum, where their futures contracts are listed on a site regulated by the Commodity Futures Trading Commission (CFTC).
He cited, for example, that Solana or XRP Futures Should Be Traded on the Chicago Mercantile Exchange (CME). Meanwhile, Geraci noted that even with this prerequisite, the US SEC would like to see a track record and trading history of an ETF listed for XRP.
In other words, an XRP futures ETF would first have to exist before the market could finally see a spot ETF for XRP. As a result, the industry expert argued that the market is looking at a time frame of several years for these developments to occur.
Other ETF experts, like Bloomberg’s James Seyffart, have reiterated similar views. However, Seyffart pointed out that the earliest timetable for other crypto ETFs after Ethereum is 2026.
Congress could speed up the timeline
Meanwhile, the ETF Institute co-founder suggested an alternative route for an XRP ETF, which he said would be much faster and simpler. Specifically, he proposed the establishment of a legitimate regulatory framework for crypto by the US Congress.
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Geraci said this framework should clearly define what constitutes a security and what constitutes a commodity and delineate oversight responsibilities.
He argued that if such a regulatory framework were implemented, other crypto ETFs could hit the market much sooner. He expressed skepticism, however, about the likelihood that Congress would pass such regulations, especially during an election.
“This is a long way of saying I don’t expect to see Solana or XRP ETFs hitting the market anytime soon,” he submitted.
Meanwhile, Ripple CEO Brad Garlinghouse believes an XRP ETF could surface. from next year. Although he believes an XRP ETF is inevitable, he maintains a flexible stance regarding the exact timeline.
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