In April 2024, it is anticipated that US-based asset management companies will submit applications for Ripple (XRP) ETFs with the SEC, potentially leading to a launch before the end of the year.
The upcoming introduction of a Ripple (XRP) exchange-traded fund (ETF) is causing excitement within the cryptocurrency market. Recent reports suggest that companies such as Blackrock (BLK: NYSE) and Grayscale are anticipated to take the lead in promoting the XRP ETF, with an application projected to be submitted as soon as April 2024.
According to insider sources, cryptocurrency influencer Ben Armstrong, known as Crypto BitBoy, hinted in a YouTube video on January 6th that an application for an XRP ETF could be submitted in April 2024, potentially aligning with the anticipated conclusion of the SEC v Ripple lawsuit.
Following the recent surge in interest in spot Bitcoin ETFs, members of the Ripple-backed cryptocurrency community have expressed strong enthusiasm for the prospect of an XRP ETF.
Supporters argue that after receiving legal clarification as a non-security in a court ruling last year, XRP is worthy of a similar spot ETF. Armstrong, echoing the community's sentiment, emphasized that this legal clarity increases the likelihood of an ETF launch.
It's worth noting that Blackrock, the world's largest asset manager with over 8.5 trillion Assets Under Management (AUM) and a major advocate for a Bitcoin ETF, is expected to spearhead the launch of the XRP ETF as indicated by BitBoy.
Grayscale Investments Officially Announces Reinstatement of XRP in GDLC Fund on January 5
Grayscale Investments (GDLC) Fund Adds Re-includes XRP/ | Source: Grayscale
After a two-year absence due to the SEC's ongoing lawsuit against Ripple, Grayscale Investments has reintroduced XRP to its Digital Large Cap Fund. The asset manager disclosed that it has allocated approximately $9.6 million, which accounts for 2.54% of its $378.5 million GDLC Fund, toward XRP.
The reintroduction of XRP to the fund has not notably impacted its price. Following the news, the price of XRP has remained relatively stable, hovering just above the $0.55 mark in the 48 hours that ensued.
This strategic decision by Grayscale to reverse its 2020 action of removing XRP from its fund in response to the SEC lawsuit has sparked speculation around the possibility of an ETF. However, the likelihood of an ETF for XRP materializing remains uncertain.
Despite an overall resurgence in cryptocurrency prices, XRP has struggled to sustain consistent upward momentum. The sixth largest cryptocurrency, which was expected to see a substantial increase following Judge Analisa Torres's ruling in July 2023, continues to encounter challenges.
At the time of writing, according to CoinMarketCap data, XRP is trading at $0.558, reflecting a 1.26% increase in the past 24 hours. However, over the weekly timeframe, the token has experienced an 8.59% decline, with a more significant 12% decrease in the past 30 days.
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