Cathie Wood’s Prediction
Cathie Wood, CEO of Ark Invest, believes that only Bitcoin and Ethereum will get the green light for spot ETFs in the US. She thinks the Securities and Exchange Commission (SEC) will not approve funds that don’t include these two major cryptocurrencies.
SEC’s Preference
Wood’s prediction aligns with experts who have said that an XRP ETF is unlikely to happen anytime soon.
Other Crypto ETFs
Some, like Steven McClurg of Valkyrie Investments, think that the approval of Bitcoin and Ethereum spot ETFs could lead to filings for other tokens. However, Wood’s recent comments suggest that Ark Invest is not planning to file for ETFs for other cryptos.
SEC’s Concerns
Industry experts believe the SEC is unlikely to approve other crypto ETFs because of concerns about market manipulation. The Commission had previously rejected Bitcoin spot ETF applications on this basis, but was forced to approve them after a court ruled that the futures and spot markets are correlated.
XRP ETF
Bloomberg analyst James Seyffart has explained that the SEC is unlikely to approve an XRP ETF until XRP futures are traded on a regulated market like the Chicago Mercantile Exchange.
