A notable figure in the XRP community has argued the irrelevance of an XRP exchange-traded fund (ETF) amid heightened calls for such an investment vehicle.
In a recent post on X, Black Swan Capitalist founder Versan Aljarrah argued that XRP exists to serve the purpose of a currency rather than an exchange-traded fund. Aljarrah claimed the obsession about a U.S.-listed crypto spot ETF is largely pointless.
In his view, the Bitcoin spot ETF is merely a diversion from the profound changes already ingrained in the global financial system. Aljarrah sees it as an open invitation for institutional corruption.
Ripple’s #XRP was meant to be a #currency, not an #ETF
The #BitcoinETF drama? Just another distraction from the deep shifts already embedded in our #financial system and an invitation for institutional corruption
Just look at #Vanguard’s restrictions, already screwing investors pic.twitter.com/sKL0dlO3M8
— Black Swan Capitalist (@VersanAljarrah) January 11, 2024
Why an XRP ETF May Not Be Bullish
Furthermore, in support of his argument on the insignificance of an XRP ETF, Aljarrah referenced the ongoing developments related to the recently approved Bitcoin spot ETF. He pointed to Vanguard’s actions, highlighting the restriction imposed on customers seeking the crypto ETFs.
Notably, attempts to invest in BlackRock’s iShares Bitcoin Trust or Grayscale Bitcoin Trust through a Vanguard retirement brokerage account resulted in warning messages. A Vanguard spokesperson affirmed that the Bitcoin investment product will not be available on the Vanguard platform.
In essence, Aljarrah aimed to counter the notion that an XRP ETF might attract a surge of investors to XRP. He sees the possibility of trading platforms implementing restrictive measures when investing in such financial instruments.
Calls for XRP ETF
Notably, calls for an XRP ETF intensified after the much-anticipated Bitcoin spot ETF saw U.S. regulatory endorsement on Wednesday. For instance, Anodos Finance founder Panos Mekras proclaimed on X, “An XRP ETF is only a matter of time.”
An $XRP ETF is only a matter of time.
— Panos 🔼{X} (@panosmek) January 10, 2024
Moreover, a senior executive at Valkyrie, a firm approved to list a Bitcoin ETF, has hinted at the possibility of an XRP ETF emerging alongside the Ethereum spot ETF.
Why an XRP ETF Is Uncertain
However, the likelihood of an XRP ETF coming to fruition remains uncertain. Attorney Bill Morgan underscored this uncertainty recently by pointing out that only three of the voting SEC commissioners endorsed the just-approved Bitcoin spot ETF.
The infamous SEC chairman himself was among the three. Interestingly, chairman Gary Gensler admitted his reluctance to vote yes, as his endorsement was primarily influenced by the defeat in the Grayscale case last year.
Essentially, Morgan stressed that the fate of an XRP ETF rests on a vote from chairman Gary Gensler. In his words: “You need a vote from Gary Gensler to approve a spot Ethereum or XRP ETF. Let that sink in.”
Bloomberg analyst James Seyffart has also argued the unlikelihood of an XRP ETF with the current SEC leadership.
