One expert predicted that the first XRP futures ETF approval would pave the way for a spot ETF. He believes this could potentially bring over $100 billion into XRP.
This prediction came after the U.S. Securities and Exchange Commission (SEC) approved ProShares' XRP futures ETF.
XRP Futures ETF Approved... Will a Spot ETF Also Be Approved?
According to official documents, ProShares plans to launch three futures-based ETFs: Ultra XRP ETF, Short XRP ETF, and Ultra Short XRP ETF. They will start trading on April 30. This development followed the launch of Tukrieum's 2x Long Daily XRP ETF in early April.
Although not a spot ETF, the approval has sparked optimism among XRP investors. Industry expert Armando Pantoja predicts this move could lead to significant capital inflow into altcoins.
"A spot XRP ETF could be next, which could create real demand and cause a price surge. Over $100 billion could soon flow into XRP." He wrote.
Pantoja emphasized that the approval is a crucial turning point for cryptocurrency. It is now attracting significant interest from Wall Street and institutional investors. This move provides XRP with a regulated and accessible path for major financial players to participate in the asset.
This development will broaden XRP's investor base, confirm its mainstream legitimacy, and position it in what he calls the "elite league of financial assets".
The analyst also compared XRP's path with Bitcoin (BTC) and Ethereum (ETH). He noted that both cryptocurrencies had futures ETFs approved before spot ETFs.
For example, Bitcoin's spot ETF was approved in 2024, three years after ProShares launched its first Bitcoin futures ETF in 2021. XRP now seems to be following a similar path.
Pantoja predicted that a spot XRP ETF approval could have a significant market impact. As institutional investors gain easier access to the asset, this is likely to generate substantial buying pressure. Additionally, a surge in demand and limited supply could set the stage for a dramatic XRP price increase.
"Futures ETF = first domino. Spot ETF = turning point. XRP's long-term setup is much stronger." Pantoja mentioned.
However, other analysts tempered expectations. They emphasized that while the futures ETF approval is certainly important, it is not the game-changer many anticipate.
"It's not the silver bullet that will trigger mass adoption or massive price movements. The true catalyst will come when a spot XRP ETF is approved. Real token. Real demand. Real market impact." John Squire posted.
While spot ETFs purchase and hold actual tokens, creating real market demand, futures ETFs only allow investors to speculate on prices without purchasing the underlying asset.
This difference means futures ETFs can raise awareness within traditional finance but do not directly impact XRP's supply or generate immediate buying pressure.
Analysts also highlighted notable drawbacks of this product, including potentially greater price volatility.
Furthermore, futures ETFs often involve rollover (contract renewal process), slippage (difference between expected and actual trading prices), and management fees. These can add inefficiencies and reduce investors' overall returns.
It's worth noting that several spot XRP ETF applications are currently awaiting SEC approval. Regulators face critical deadlines for the Grayscale XRP Trust and 21Shares Core XRP Trust ETF. The decision is scheduled for October.
While the U.S. deliberates, other countries have moved ahead. BeInCrypto reported that HashDex launched the first XRP ETF in Brazil last week. Importantly, confidence remains high that similar developments will occur in the U.S.
On the prediction platform Polymarket, the likelihood of XRP ETF approval in 2025 stands at 76%. Meanwhile, the market's enthusiasm for XRP is reflected in its price.
The coin's value increased by 9.4% last week. In fact, the recovery pushed it to its highest level since late March. At the time of writing, XRP is trading at $2.3, showing a daily increase of 7.3%.
