“The XRP DR represents ownership of the underlying $XRP without investors having to buy the asset directly via a crypto exchange. The benefits are similar to those of an ETF where investors can gain exposure to an asset without having to buy it directly through a foreign exchange or a crypto exchange.”
Are US XRP-Spot ETFs Next?
The latest development comes amid ongoing speculation about SEC approval for US XRP-spot ETFs. On Thursday, February 6, the Chicago Board Options Exchange (CBOE) submitted 19b-4 applications to the SEC. The filings sought approval for Bitwise, 21Shares, Canary Funds, and WisdomTree XRP-spot ETFs.
As with previous crypto-spot ETF filings, the SEC has 45 days to review the applications but may extend the review period to 90 days.
The launch of a US XRP-spot ETF market, combined with the availability of XRP DRs, could boost XRP demand. However, Bitwise Invest Chief Investment Officer highlighted a disconnect between retail and institutional investor sentiment, stating:
“There is an absolutely massive disconnect between retail and professional sentiment in crypto right now. Retail sentiment is the worst it’s been in years, while professional investors are extraordinarily bullish. It’s like living in two completely separate worlds.”
While Trump’s re-election initially boosted sentiment, his subsequent tariff policy pressured XRP prices. XRP has fallen from $3.1341 to February 3 low of $1.7938 on tariff jitters before partially recovering. US tariffs may drive import prices and inflation higher, potentially leading to a more hawkish Fed rate stance.