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  • Some of the world’s largest companies are diving into the crypto ETF wave, with the most recent one being BlackRock, but where’s the ETF for XRP. asks Yassin Mubarak.
  • The crypto investor pointed out that of all the tokens that are getting ETF interest, XRP is the only one that has gained legal clarity after its landmark victory against the SEC.

Crypto exchange-traded funds are all the rage. Most recently, $8.6 trillion asset management behemoth BlackRock registered an Ethereal ETF investment vehicle. Applications for Bitcoin spot ETFs have been flowing ceaselessly to the SEC. But why does XRP, one of the largest cryptocurrencies in the market, still not have any ETF tied to it?

This is the question that seasoned blockchain and crypto trader Yassin Mubarak is posing. Mubarak is the founder of Dizer Capital, a private equity firm whose portfolio includes energy industry startup RedgridGPT, institutions crypto research firm CryptoEQ, and eClinical software services company Triall. He has been investing in crypto since 2013.

Mubarak took to Twitter to express curiosity over why XRP lags behind Ethereum and BTC on the ETF front despite being one of the oldest and best-supported digital assets in the world. The crypto has weathered storms, including its legal civil war with the SEC, but is yet to record a single ETF.

“Many applications for BTC spot ETF and now there’s a new ETH spot ETF application. I find it peculiar that there’s no spot ETF application for the only crypto with actual legal clarity. That crypto is XRP,” he posted on the social media platform in a conversation around the rise of crypto ETFs.

The legal clarity that XRP has stems from its securities laws violations lawsuit with the SEC. Before he stepped down in December 2021, ex-chair Jay Clayton sued Ripple for breaching security laws by issuing and selling XRP tokens on the US market.

However, in July, a New York judge ruled that Ripple didn’t violate securities laws by selling XRP on the open market. CEO Brad Garlinghouse and founder Chris Larsen were also cleared after the SEC withdrew its charges against them recently. It was found guilty of securities law breaches for selling XRP to sophisticated investors.

Why Does XRP Lack an ETF?

XRP is in the conversation for ETFs. It’s the world’s fifth largest crypto by market cap at $35.1 billion and has, at one point, been third. Its trading volume is also relatively high at $1 billion in the past day. The token is also being increasingly used in real-world applications, especially for cross-border funds transfers.

However, Ethereum and Bitcoin have dominated the ETF conversations, and rightfully so. While XRP is massive, it pales in comparison to the two top cryptos. Ethereum, for instance, is seven times bigger than XRP in market cap and 10 times bigger in trading volume. BTC is more than 20x bigger in market cap.

Is XRP likely to get an ETF in the near future? The market indicates it will. Once Bitcoin spot ETFs get the SEC’s approval, the market will skyrocket and XRP will be one of the first beneficiaries.

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