As the US Securities and Exchange Commission prepares to decide on several Bitcoin ETF applications in early 2024, prominent crypto analyst WrathofKahneman has weighed in on the potential for an XRP exchange-traded fund (ETF). WoK, a pro-ZRP influencer, has asserted that the realization of an XRP ETF is unlikely until a significant development occurs.

Crypto ETFs in 2024 mean volatility. It’s not just the influx of institutional funds, it’s the arbitrage between the ETF & the underlying asset. And not many co’s house both ETF & Crypto under one roof, exacerbating arbitrage opp’s. Can’t imagine #XRP ETFs until case is over.

— WrathofKahneman (@WKahneman) December 31, 2023

The Arrival of Crypto ETFs

Wok explains that the arrival of crypto ETFs will lead to increased institutional investment in the crypto space, which will have an impact on the market. He highlights that the influx of institutional funds could result in heightened volatility as arbitrage opportunities emerge between the ETF and the underlying crypto assets.

The Onoging XRP Lawsuit

In October 2021, Ripple was hit with a lawsuit from the SEC, alleging that XRP sales amounted to an unregistered securities offering. The case is still going on, and until it is resolved, WoK believes that an XRP spot ETF is unlikely.

Bloomberg Analyst previously suggested that the listing XRP futires on the Chicago Mercantile Exchange (CME) could pave the way for an XRP ETF. However, until this occurs, Wok’s assessment remains valid.

SOURCE