'People Might Be Underestimating Demand For Spot XRP ETFs,' ETF Expert Says As CME XRP Futures Set Open Interest Record
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Spot XRP exchange-traded funds may see more demand than people anticipate, according to The ETF Institute co-founder and NovaDius Wealth Management President Nate Geraci.
“Think people might be underestimating demand for spot XRP ETFs,” Geraci said Tuesday on X, highlighting that the XRP futures contract had set a Chicago Mercantile Exchange record.
The CME on Monday reported that its XRP futures contract had surpassed $1 billion in open interest, the fastest-ever contract to do so. According to the CME, the XRP contract hit the milestone in just over three months.
“This is a huge sign of market maturity, with new capital entering the market,” the CME said.
Don’t Miss:
The recent XRP record is likely to strengthen the case for a spot ETF approval. Experts, including Geraci and Bloomberg Senior ETF Analyst James Seyffart, have often said a robust Commodity Futures Trading Commission-regulated futures market would be required for the Securities and Exchange Commission to approve spot XRP ETFs.
There are at least seven XRP ETF applications on the SEC’s desk from issuers such as Bitwise, Canary Capital, Franklin Templeton and Grayscale, according to a list compiled by Seyffart and fellow Bloomberg Senior ETF Analyst Eric Balchunas. Geraci has continued to predict that BlackRock (NYSE:BLK) would eventually join the bandwagon, but there is no sign of such a move yet.
Trending: An EA Co-Founder Shapes This VC Backed Marketplace—Now You Can Invest in Gaming’s Next Big Platform
Seyffart and Balchunas in June gave XRP ETFs a 95% chance of approval.
“Odds haven’t really changed much if at all,” Seyffart said Tuesday on X.
Popular blockchain-based cryptocurrency prediction market Polymarket, on the other hand, places the odds of a spot XRP ETF approval at 84%.
But approval of these products is not expected until their final deadline. For many of the spot XRP ETF applications, the final deadline is in October.
Ahead of this deadline, analysts have suggested that there is meaningful engagement between issuers and the SEC, citing recent filing updates.
“Bunch of XRP ETF filings being updated by issuers today. Almost certainly due to feedback from [sic] SEC. Good sign, but also mostly expected,” Seyffart said last week.
See Also: Kevin O’Leary Says Real Estate’s Been a Smart Bet for 200 Years — This Platform Lets Anyone Tap Into It
While market observers await the launch of spot XRP ETFs, futures-based products are already taking off. Geraci said on Tuesday that the futures-based offerings already hold $800 million in assets under management.
Still, digital asset service provider Northstake told DLNews in February that spot XRP products could pull that same $800 million in their first week. Meanwhile, JPMorgan Chase (NYSE:JPM) analysts estimated last year that spot XRP ETFs could pull between $4 billion and $8 billion in their first year.
Spot ETF products have served as a boon to the price of Bitcoin and Ethereum over the past year by providing an easy access point for institutional capital. Many proponents are hopeful that the offerings will have a similar impact on XRP’s price. Most recently, the asset was trading at $3.
Read Next: From Chipotle to Red Bull, Top Brands Are Already Building With Modern Mill’s Tree-Free Wood Alternative — Here’s How You Can Invest Too
Image: Shutterstock
This article ‘People Might Be Underestimating Demand For Spot XRP ETFs,’ ETF Expert Says As CME XRP Futures Set Open Interest Record originally appeared on Benzinga.com